Tariff Refund Rights Trading Heats Up After Supreme Court Ruling

Following the Supreme Court's decision declaring Trump's emergency tariffs illegal, businesses are seeing a surge in offers to purchase their potential refund rights. Investment prices for these claims have jumped to 40-50% of face value as companies weigh selling now versus waiting for full government refunds.

Companies across the nation are fielding increased offers from investors eager to purchase rights to potential tariff refunds following the U.S. Supreme Court’s recent determination that President Donald Trump’s emergency tariffs violated federal law.

While the nation’s highest court stopped short of mandating the return of approximately $175 billion collected by the government since February of last year, numerous businesses are now preparing for anticipated lengthy court fights to recover those payments.

In recent months, many corporations have chosen to minimize risk by transferring rights to some or all potential refunds to third-party investors, accepting immediate payments worth only a portion of the total amounts owed. Under these arrangements, companies retain the upfront cash while investors position themselves to collect any eventual government payouts.

Legal professionals working in this marketplace describe these transactions as “special situations” investments, which appeal to buyers because they operate independently of traditional market fluctuations.

Amy Pasacreta, an attorney with Orrick’s restructuring division, reported witnessing dramatically increased activity in this specialized market following the court’s decision, with trading prices climbing into the 40-50% range after previously operating at significantly lower levels.

Orrick began observing demand for refund claims shortly after the tariff implementation in April.

The Supreme Court case addressed two distinct emergency tariff categories: measures designed to reduce fentanyl imports and a wider array of ‘reciprocal’ tariffs. The fentanyl-related tariffs, which some experts believed had better chances of surviving legal challenges, previously commanded lower prices. According to Pasacreta, both categories now trade at similar levels since Friday’s ruling.

Prior to the court’s decision, investors were offering 16-17% for fentanyl tariff claims and 26-28% for reciprocal tariff claims.

“The reason that we’re not seeing higher (prices) is because there is still the uncertainty,” Pasacreta explained. “This administration has indicated that they’re going to fight the refunds.”

Mark Bissell, who leads vacuum manufacturer Bissell Inc, confirmed his company has received numerous inquiries since Friday regarding the sale of their refund rights, with quoted prices reaching 45%.

“Our name pops up, because we’re higher volume in (imported) containers,” he noted, “so we’re on a list a lot of people see.”

However, Bissell remains hesitant to sell, preferring to wait and determine whether his company might receive complete reimbursement from the Trump administration. “We spent last year thinking we wouldn’t get anything back, so if we get it back—that’s a bonus,” he stated.