Wall Street eyes tariff refunds

Wall Street firms are buying claims on tariff refunds before many importers have received a dollar from the government. (politico.eu) The trade opened after the Supreme Court ruled 6-3 on February 20 that the International Emergency Economic Powers Act does not let a president impose tariffs, wiping out a big share of Donald Trump’s 2025 tariff program. (supremecourt.gov) U.S. Customs and Border Protection told the Court of International Trade this week that it plans to launch its refund system, called Consolidated Administration and Processing of Entries, on April 20. The agency said 56,497 importers had already completed the steps for electronic refunds totaling $127 billion as of April 9. (nbcnews.com) The total pool is larger. Court filings cited by Reuters say more than 330,000 importers paid the tariffs on 53 million shipments, for about $166 billion in duties that could now be returned with interest where applicable. (reuters.com) That delay created a market. Politico reported that hedge funds in London, New York and Singapore are offering cash now to companies willing to sell their refund claims at a discount rather than wait through months of paperwork and litigation. (politico.eu) Some companies are not selling the claims outright. Reuters reported on April 2 that importers were also exploring loans backed by expected refunds, using the claims like collateral while they wait for Customs to process payments. (usnews.com) The refund line is not moving evenly. Customs said the first phase will focus on recent and straightforward entries, while a separate $2.9 billion subset would require manual processing that could pull staff away from trade enforcement. (supplychaindive.com) The legal fight is not over either. After the February ruling, Trump replaced the voided emergency tariffs with a new 10 percent global tariff under Section 122 of the Trade Act of 1974, and that tariff is already being challenged in the same trade court. (politico.com) Businesses that hated the original tariffs are still in court because the Supreme Court decision did not settle every dispute over later tariffs, exclusions and refund mechanics. USA Today reported this week that companies ranging from cheese importers to infant-goods sellers are still fighting over what duties remain and which refunds they can actually collect. (usatoday.com) For now, the bet on Wall Street is simple: the government owes a huge sum, many companies want cash sooner, and the longer the refund queue stretches, the more valuable that impatience becomes. (politico.eu)