Archive · 23 Dec 2025
Companies Sell Tariff Refund Claims to Investors
Some companies in the U.S. are selling their rights to get money back from tariffs they paid to investors.
These companies get a small amount of money now, but if the Supreme Court says the tariffs were illegal, they keep that money.
If the tariffs are okayed, the companies keep the money, and the investors get nothing.
One company, Kids2, got $2 million for $15 million in tariffs they paid.
They think it's a good deal because they might not get the money back quickly if the tariffs are overturned.
Some other companies don't want to sell their rights, thinking the government might find another way to keep the tariffs.
U.S. companies are selling their rights to potential tariff refunds to investors for upfront payments.
Kids2 received $2 million for $15 million in tariffs paid, getting 23 cents on the dollar for reciprocal tariffs and 9 cents for fentanyl tariffs.
Investors are willing to buy these claims, offering 16-17% for fentanyl tariff claims and 26-28% for reciprocal tariff claims.
Companies like Kids2 are hedging their bets ahead of the Supreme Court's decision on the tariffs' constitutionality.
Some companies, like Bissell Inc., are not interested in selling their refund rights, believing the administration will find a way to keep collecting the taxes.
- Who
- U.S. companies, including Kids2, and investors
- What
- Selling rights to potential tariff refunds to investors
- When
- Before Supreme Court oral arguments in early November
- Where
- United States, with deals brokered by Jefferies LLC
- Why
- To recoup some tariff costs upfront, hedging against Supreme Court decision
- Company
- Kids2
- CFO
- Mark Mintman
- Broker
- Jefferies LLC
- Buyer
- Boston-based hedge fund
- Total Tariffs Paid
- $15 million
- Upfront Payment Received
- $2 million
- Reciprocal Tariff Claims Rate
- 23 cents on the dollar
- Fentanyl Tariff Claims Rate
- 9 cents on the dollar