Retailers — Eager for Cash — Sell Off Rights to Potential Tariff Refunds
Retailers have sold refund claims for as little as 30 cents on the dollar as legal uncertainty and high borrowing costs push demand for cash.
- Retailers including American Eagle Outfitters and GoPro have sold the rights to their anticipated tariff refunds to third-party investors for immediate cash, seeking liquidity amid the ongoing government refund process.
- Companies sought these deals after paying tariffs imposed under the International Emergency Economic Powers Act, which the Supreme Court later ruled illegal, forcing firms to balance immediate liquidity needs against potentially higher future payouts.
- American Eagle sold $68.9 million in claims for $18.6 million, while The Children's Place exchanged $38.2 million in claims for about $25.7 million according to recent company filings.
- E.l.f. Beauty reported that tariff refunds helped profits nearly double, allowing the company to test pricing strategies across its product assortment to stimulate demand.
- As of late July, the government has returned roughly $100 billion of the $166 billion in tariffs collected, though businesses continue navigating new disputes over ongoing trade policies.
12 Articles
12 Articles
The Independent
The Independent (US)Retailers are selling their tariff refunds on the cheap for a quick infusion of cash
Some companies struck deals to sell tariff refund shares before the Supreme Court even ruled against the president’s sweeping levies
Trump Administration Refunds $100 Billion in Tariffs
“Donald Trump’s administration has paid out about $100 billion in tariff refunds since the U.S. Supreme Court struck down its use of emergency powers to levy duties on its trading partners earlier this year,” the Financial Times reports.
Retail Dive
Retailers — eager for cash — sell off rights to potential tariff refunds
A secondary market has emerged for retailers, such as American Eagle Outfitters and The Children's Place, to get capital quicker by monetizing tariff refunds.
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