Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessUS Companies Shamed by Trump Tiptoe Into a Tariff-Refund RaceCompanies in the US are wary of saying too much about one particular nugget of good news for their bottom line and inflation.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Shoppers waiting to check out inside a Costco store in Napa, California last year. Photo by David Paul Morris /Photographer: David Paul Morris/(Bloomberg) — Companies in the US are wary of saying too much about one particular nugget of good news for their bottom line and inflation.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorOnly about 5% of the 3,000 largest publicly traded US companies mentioned refunds in the context of President Donald Trump’s now-illegal tariffs in recent comments and regulatory filings, according to a Bloomberg analysis of firms in the Russell 3000 Index.The Customs and Border Protection agency opened a refund portal on April 20 for the more than 330,000 firms that paid import taxes under Trump’s use of the International Emergency Economic Powers Act, or IEEPA. The first batch of payments came unexpectedly quickly, and some companies have already logged those benefits. Others acknowledge they may have to wait at least another quarter or two to offer details. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThere’s reason for discretion: The scramble for as much as $166 billion in refunds — plus interest — comes with the risk of political and legal jeopardy. Trump often says it’s foreign firms that pay his import taxes — though studies show otherwise — and he’s now painting refund backers as unpatriotic after the Supreme Court struck down his IEEPA authority.“You’re talking about the people in many cases that hate our country, giving them back money,” the president told reporters at the White House on Thursday. “It was a terrible decision.”Recent disclosures from some of America’s most well-known businesses, ranging from Cardinal Health Inc. to Walmart Inc. challenge Trump’s assertion and offer a glimpse into the refund effort.Among those S&P 500 companies presenting amounts, the documents indicate they either paid IEEPA tariffs, or are expecting to receive IEEPA-related refunds, totaling about $7.3 billion, according to calculations by Bloomberg.That’s only the beginning. US Customs now has the complicated task of refunding the 330,000 importers that paid the IEEPA levies over the past year, and early filers are already seeing $35.5 billion flowing into their bank accounts. Still, issues with electronic filings stemming from the chaotic tariff rollout can lead to rejections, and many importers remain skeptical that the system will work for their more complex entries.According to the first flurry of analyst calls and other earnings announcements, executives are balancing the need to answer Wall Street’s financial questions against their uncertainty about the amount and timing of reimbursements.Saying too much about refunds invites not just Trump’s scorn but also legal challenges from consumers clamoring for a piece of the payout.Lawsuit Risk“I counsel against public statements regarding impacts of the tariffs or tariff refunds due to the risk of class-action suits as well as other customer and supplier considerations,” said Angela Santos, who leads the customs practice at ArentFox Schiff LLP in New York.Companies including Nike Inc., Lululemon Athletica Inc. and Amazon.com Inc. have been hit recently by lawsuits from customers who allege they’re owed a refund because they paid higher prices as a result of tariffs that were ultimately deemed unlawful. A lawsuit filed May 15 accused Amazon of profiting off “hundreds of millions of dollars in unlawful tariff costs” and of forgoing refunds in order to “ingratiate itself with Trump.” The class action is a bid to force the e-commerce giant to seek, and pass along, refunds. The company has not publicly stated whether it has or will pursue reimbursements.Costco Wholesale Corp. is one of thousands of companies that sued the Trump administration over IEEPA refunds, but didn’t indicate whether it had applied for reimbursements via the customs portal in a court filing submitted May 18. The retailer argued that a consumer class-action lawsuit should be dismissed and stated that “Costco has received no tariff refunds yet.”US households struggling with higher gasoline and food costs may see some indirect benefits even though refunds aren’t flowing straight to consumers, according to Stephen Juneau, an economist at Bank of America Corp.“Importers that receive refunds will likely use the money to offset rising energy and shipping costs,” Juneau wrote in a May 20 note to clients. “They may also offer some type of consumer relief, which surveys suggest is more likely to come in the form of slower price hikes rather than a direct benefit to consumers. Therefore, the refunds could be a modest disinflationary force in ahead of midterms,” he said, referring to November congressional elections.Many of America’s largest corporations are pursuing refunds, even if they’re not sharing much.Refund Seekers“I haven’t heard anybody say they weren’t going to file,” said Tony Gulotta, leader of Ryan’s national tax practice in New York. Apple Inc. is one of the largest companies so far to confirm it’s going after refunds. Chief Executive Officer Tim Cook said the iPhone maker is “following the established processes, and we plan to reinvest any amount we receive back into US innovation and advanced manufacturing.”Gene-sequencing giant Illumina Inc., whose CEO Jacob Thaysen joined Trump and more than a dozen other executives including Cook on a trip to China earlier this month, said in a May 4 filing it intends to seek refunds after incurring “significant costs under IEEPA-related tariffs,” while noting the uncertainty surrounding later phases of the CBP’s refund plan.Home Depot Inc. Chief Financial Officer Richard McPhail said on Tuesday he expected refunds to provide “significant offsets” to increased fuel and transportation costs. While McPhail didn’t say how much the company was expecting, he did say the first refunds had already been received.TJX Cos. CFO John Klinger confirmed Wednesday the parent of cut-price retailer TJ Maxx had filed for refunds, but demurred on providing numbers. According to an April estimate from Citigroup Inc., Home Depot could recover about $540 million, while TJX may be due $400 million.Walmart on Thursday said it’s seeking refunds for goods estimated to be worth “less than half of 1% of our US annual sales,” without offering more specifics. Some companies have already incorporated expected refunds into earnings, boosting profits and outlooks in ways that have drawn scrutiny from investors. General Motors Co. raised its full-year outlook to reflect about $500 million in expected tariff refunds, though shares fell after the automaker warned costs tied to the Iran conflict would rise. Ford Motor Co.’s shares also declined after analysts noted its earnings beat was driven largely by claims of a $1.3 billion tariff refund. Similarly, Netherlands-based Stellantis NV booked a one-time gain of around €400 million ($465 million) for expected future tariff refunds, but saw its shares slide.More CautiousSeveral companies said they plan to file for refunds while pointing to uncertainty around when they’ll get them. Toymaker Hasbro Inc. told investors on Wednesday it has roughly $50 million in IEEPA claims that are disqualified from Phase 1 refunds, because they’re tied up in a process with CBP called reconciliation. “We’re still waiting to understand when the government is going to get to that piece of the rebate process,” Hasbro CFO Gina Goetter said.Weyco Group Inc., the owner of Trump’s favored shoe company Florsheim, told investors May 6 that it applied for refunds as soon as the portal opened and that IEEPA tariffs had led to reduced margins and forced the company to raise consumer prices.‘Working Hard’Polaris Inc., the maker of off-road vehicles and boats, is seeking about $125 million of IEEPA refunds. “We’ll be working hard to get that money that’s rightfully ours,” CEO Michael Speetzen said April 28. Tesla Inc., founded by Trump administration ally Elon Musk, acknowledged it may be eligible for refunds, but “there is still a lot of uncertainty around the final outcome,” CFO Vaibhav Taneja said April 22. The electric-vehicle maker also said it was tracking whether it will have to issue its own refunds to certain battery-storage customers. In the meantime, billions of dollars owed to importers will remain in the Treasury Department while some struggle to file claims before their entries time out of Phase 1 eligibility, Ryan’s Gulotta said. Others must wait while CBP builds out new capabilities in the refund portal and irons out some legal issues surrounding older and more complex entries. And for some companies, applying for refunds might not be worth the effort. “One dollar of IEEPA refund does not truly equate to $1 recovery, due to those administrative costs, so companies may not be able to pass the full recovery back,” said Santos of ArentFox. —With assistance from Zoe Tillman and Jeff Mason. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.