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Several off-price retailers have begun receiving refunds for now-defunct International Emergency Economic Powers Act tariffs they paid, and executives discussed the reimbursements on recent earnings calls.
Burlington, for instance, recorded $55 million in tariff refunds and said that will be invested back into the business. Meanwhile, the topic of Ross Stores’ $253 million in IEEPA tariff refunds led to a discussion on the company's pricing strategy.
Retailers and other importers are receiving the refunds after U.S. Customs and Border Protection launched a dedicated system in April for returning IEEPA tariffs. As of Aug. 21, the system has sent approximately $106.6 billion in IEEPA tariff refunds for disbursement. Walmart, Target and Amazon are among the importers that have already begun receiving refunds and shared how they plan to use the invalidated levies.
A year before President Donald Trump’s second term began, TJX CEO Ernie Herrman said the possibility of higher tariffs and market “chaos” may provide favorable buying opportunities. Other off-price retailers, including Ross and Burlington, also didn’t seem too phased about tariffs at the time. According to analysts, because off-price retailers sourced inventory from other retailers and brands, the merchandise model provided a shelter against tariffs. However, tariffs began to squeeze off-price retailers more than initially anticipated, which led the chains to adjust inventory and pricing strategies to protect margins.
