In February, the US Supreme Court struck down the steep tariffs that Trump imposed on trading countries under the International Emergency Economic Powers Act (IEEPA), calling it illegal and directed the government to initiate refunds worth $*** billion to several companies and retailers.
According to Dana Telsey of Telsey Advisory Group, an analysis by the brokerage showed that most apparel and retail firms plan to use the tariff refunds to reinvest in the business, offset fuel cost pressures, invest in price, repay debt, and return cash to shareholders.
Telsey Advisory Group’s report noted that it analysed commentary from about ** of the companies it covers and completed a quick analysis of nearly ** consumer firms, with the key takeaway being that the majority of companies that have commented on tariff refunds have plans to reinvest rather than expect to let it fully flow through to earnings.
Retailers and the tariff refund plans
