Wall Street bets on Trump's repeal of duties: funds are buying up rights to reimburse fees
Among those offering customers such deals is the former company of the U.S. Secretary of Commerce
Wall Street investors are betting that the U.S. Supreme Court will eventually rule President Donald Trump's sweeping "mirror" duties illegal and are buying up rights from U.S. importers at a steep discount for a possible refund of the fees paid. We could be talking about a sum close to $100 billion.
Details
Investment and other specialized funds are offering importers in need of liquidity up to 20 cents for every dollar they paid in duties, customs brokers and trade law lawyers told Nikkei Asia. The main interest is in claims worth at least $1 million, they said.The expected refunds cover both "mirror" tariffs of up to 41% imposed on goods from various countries and separate duties on products from China, Canada and Mexico imposed because of their alleged involvement in fentanyl trafficking, the paper said.
US investment banking firm Oppenheimer facilitated the first transaction for duty drawback rights in July 2025, according to a document sent to importers and made available to Nikkei Asia. The scheme provides importers with quick liquidity, while refunds from the budget under a possible court ruling would have to wait years, the publication said.
Cantor Fitzgerald - the former finance company of U.S. Commerce Secretary Howard Lutnick - also offered its clients to buy the rights to reimburse duties, Wired magazine reported in July.
How the trials are going
On November 5, the U.S. Supreme Court will hear oral arguments in a case in which importing companies and Democratic state attorneys general are challenging the legality of Trump's duties, which he imposed bypassing Congress under the Emergency Economic Empowerment Act (IEEPA). By September 23, some $89 billion in duties had been collected under IEEPA, Nikkei Asia states, citing U.S. Customs and Border Protection data. The lower courts have already recognized these duties as illegal. If the Supreme Court upholds their decisions, the government will be obliged to start the process of refunding the money to importers.
This article was AI-translated and verified by a human editor
