Wall Street is betting on tariff refunds after Supreme Court ruling
📖 Full Retelling
When the Supreme Court struck down many of President Trump's tariffs, it left importers wondering how long they'd have to wait to get their money back. Hedge funds are offering to help out. (Image credit: Spencer Platt)
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Economy Wall Street is betting on tariff refunds after Supreme Court ruling March 5, 2026 5:05 AM ET By Vito Emanuel People walk by the New York Stock Exchange on Wall Street. Trades of tariff refunds have ballooned since the Supreme Court struck down many of President Trump's tariffs. Spencer Platt/Getty Images hide caption toggle caption Spencer Platt/Getty Images When the Supreme Court struck down a huge portion of President Trump's tariffs last month, it set off a wave of uncertainty about how, when and if the approximately $180 billion importers have paid might be refunded. And Wall Street seized the opportunity to make some money. In fact, it had already cooked up a trade for this. Its offer to importers: Instead of waiting indefinitely to recoup the money they spent on tariffs, they could sell to hedge funds their claims to tariff refunds, or a portion of them, at a discount. In return, hedge funds would get the full claim amount when — and if — refunds come through. And they'd also take on the burden of pursuing those claims. Wes Harrell, who heads a trading group at Seaport Global, has been connecting importers and hedge funds on these trades since last November. Since the ruling, he said, everyone wants in. Economy 7 key things to know about Trump's tariffs after the Supreme Court decision "There has just been a tremendous amount of inquiry, both from buyers and sellers," Harrell said. Altogether, he said, he has seen about a couple of hundred million dollars' worth of these trades. But he ballparked the inquiries at as much as a billion dollars in potential future trades. Of late, these trades are going for roughly 45 cents on the dollar on average, although the actual value of each trade varies. That's up from 40 cents right after the Supreme Court's ruling — and around double what they were trading at before it. Even at a discount, there are two big reasons these trades are appealing to importers. A shadowy industry is helping small businesses pay tarif...
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