Wall Street investors are buying up claims to potential tariff refunds, betting that the Supreme Court of the United States (SCOTUS) will strike down President Donald Trump's signature economic policy and require the government to disgorge tens of billions of dollars that companies have paid this year in import taxes.
A handful of hedge funds and specialized investment firms are offering importers around 20 cents for every dollar they paid in Trump's "reciprocal" tariffs and roughly 5 cents per dollar for levies on Canadian, Mexican or Chinese goods stemming from the president's feigned ire over fentanyl trafficking, according to Salvatore Stile, founder of Alba Wheels Up International, a New York-based customs broker. The anti-drug tariff claims are worth less because they are seen as more likely to survive legal challenges and thus less likely to produce refunds.
The minimum claim needed to draw investor interest has risen from a couple million dollars to around $10 million in recent days, said Stile, who declined to name the participating funds, citing business confidentiality.
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