Wall Street Firms Acquire Tariff Refund Claims Amid Legal Uncertainty

Hedge funds and specialized finance firms are aggressively purchasing rights to potential tariff refunds from U.S. importers, capitalizing on the legal ambiguity surrounding Trump-era trade policies. Claims tied to reciprocal tariffs fetch around 20 cents on the dollar, while those linked to anti-drug levies on goods from Canada, Mexico, or China trade at just 5 cents due to higher perceived legal durability.

The market has shifted toward larger transactions, with minimum claim sizes now approaching $10 million. For importers who absorbed tariff costs, these deals offer immediate liquidity. Investors stand to profit if the Supreme Court overturns the measures, pocketing the difference between their purchase price and the full refund value.

Small businesses face a dilemma: accept partial payments now or gamble on future full repayments. Customs broker Salvatore Stile reports advising over 20 importers on deals involving tens of millions in claims, noting the market's daily volatility leaves many uncertain about their best course of action.