A February ruling wiped out tariff collections tied to the International Emergency Economic Powers Act after about $166 billion had already been paid under it. At first, executives tiptoed around how they would chase and use refunds, wary of pushback from the president and lawsuits from consumers who wanted a cut. As money began to arrive, the tone shifted and updates picked up.
By Bloomberg's count, companies in the Russell 3000 referenced refunds close to a thousand times in July, August and September, roughly four times the prior quarter's pace. Consumer discretionary and consumer staples companies generated more than a third of those references and, in that span, reported almost $9.8 billion in refunds that had been approved by US Customs. Expected but not-yet-confirmed sums were left out.
Companies are spreading the cash around. Some are cushioning higher fuel and materials bills. Others are plowing a slice into worker benefits, paying suppliers who helped with tariff pain, trimming debt, or sweetening prices for shoppers.
Williams-Sonoma Inc. said in late August it put $10 million of a $200 million refund into employee 401(k) contributions and sent $47.5 million to vendors that had granted inventory discounts to blunt tariff costs. "We're so appreciative to have the money back and to be able to reward our employees with part of it," Chief Executive Officer Laura Alber told analysts, calling out staff efforts to manage tariffs during "a very chaotic year moving products all over the world."
Kohl's Corp. noted that, of roughly $150 million in refunds, a portion was passed along to vendors that had shouldered higher import expenses, and the company also funneled money back into the business, such as stocking up lower-priced labels. Walmart Inc. told investors in August it was using part of its refund to support short-term markdowns and promotional offers. Elf Beauty Inc. said a share of its $50 million refund will finance price reductions on roughly 10% of its items. Academy Sports & Outdoors Inc. disclosed $83.7 million in refunds and later transferred $72.2 million of the claims to another company for $10.5 million, adding that most of the cash was used to cut prices.
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Helen of Troy Ltd., which owns OXO and Hydro Flask, said the initial refunds totaling more than $9 million will be "more than offset" by higher costs expected over the rest of the year.
Hunting down every dollar owed can take time, so some companies are cashing out through a growing market for these receivables. Funko, Inc. reported selling more than $22 million in refund claims to a financial institution for $19.2 million and then directed a portion of the cash toward reducing a term loan. Xerox Holdings Corp. booked $105 million in refunds and subsequently monetized the receivable by selling it to a buyer for $80 million in cash, which management said helped reduce debt. The bottom line: refunds can show up as dollars in the bank or as claims that can be sold for immediate liquidity.
The relief is real, but it is not forever. Stanley Black & Decker Inc. described the "temporary tariff tailwind" as being overshadowed by inflation and higher costs for inputs like metals and oil, adding that "it appears more likely than not a price increase will be necessary" in 2027 due to inflation. Bath & Body Works Inc. is projecting $30 million in extra tariff and other input costs in the back half of this year, and CFO Tom Javitch told analysts he expects Canada's tariff rate to stay at 50% through the rest of 2026. "We also have a large Canada retail business, so there is exposure to retaliatory tariffs if applied to our categories, and we're still evaluating this as new information is being released, really in real time," he said.
For shoppers and investors alike, the message is straightforward: refunds are helping companies bridge higher costs and, in some cases, pass along short-term discounts. Once the one-time checks are spent and input costs keep climbing, that cushion shrinks.
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