U.S. Retailers Sell Tariff Refund Rights at Discount to Secure Immediate Cash

After the U.S. Supreme Court ruled that certain tariffs were illegal, many companies became eligible for massive refunds. However, due to slow and uncertain government processing, businesses facing cash flow pressures are adopting an unconventional financing strategy: selling their future tariff refund rights to third-party buyers at steep discounts in exchange for immediate cash inflows.

According to reports from The Wall Street Journal and Retail Dive, multiple companies, including GoPro, American Eagle Outfitters, and The Children’s Place, have already reached agreements to transfer tariff refund claims worth millions of dollars.

American Eagle Outfitters’ approach is particularly representative. In its Q1 2026 financial report, the company disclosed that it sold $68.9 million in tariff refund claims for $18.6 million, securing immediate cash flow.

Another retailer, The Children’s Place, stated it paid approximately $40 million in tariffs and has agreed to transfer $38.2 million of its refund claims to Alnus Investors in exchange for $25.7 million. Academy Sports & Outdoors similarly sold part of its claims to receive about $10.5 million, while retaining the right to claim refunds on the remainder directly from the government.

The main driver behind this trend is the federal government’s slow refund process. Although the U.S. Supreme Court ruled in February 2026 that tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were unlawful, the process of applying for refunds through U.S. Customs and Border Protection (CBP) has proven extremely difficult and time-consuming. As of the end of July, the government has refunded approximately $100 billion—only about 60% of the total $166 billion collected.

David Wong, Executive Director at financial advisory firm BDO, noted that the biggest risk for companies in these transactions is timing uncertainty. Firms must weigh the choice between waiting longer for full refunds versus receiving a smaller amount immediately. For retailers urgently needing cash buffers, the flexibility provided by immediate financing remains attractive, even if it means sacrificing part of the potential refund.

Meanwhile, trade disputes remain unresolved. Although the previous tariffs were ruled illegal, Trump is attempting to revive tariff policies using the 1974 Trade Act, which has already prompted lawsuits from at least 25 state governments and multiple small business groups.