Apple, Nike among 40-plus US firms receiving $9.6B in tariff refunds faster than expected

Major US companies are receiving tariff refunds from the Donald Trump administration faster than expected, with some reporting that the payments have boosted their quarterly earnings while others plan to pass the money on to customers or use it to lower prices.

More than 40 companies in the S&P 500 have reported a combined $9.6 billion in tariff refunds, according to the Wall Street Journal on Wednesday. At least $2.1 billion of that total has already been received in cash.

US Customs and Border Protection said refund applications filed through July 31 exceeded 252,000. In a recent federal court filing, the agency said the total value of refund claims currently being processed stands at $128.7 billion.

Technology hardware companies reported the largest refunds by sector. Six firms reported a combined $2.5 billion, with roughly 90 percent coming from Apple.

Apple led all companies with approximately $2.2 billion in refunds, followed by Nike ($986 million), FedEx (about $800 million), Amazon ($640 million) and General Motors ($500 million).

Apple said the tariff refunds added 11 cents to its earnings per share in the most recent quarter, equivalent to about 5 percent of the quarter's total profit. GE HealthCare said 18 cents of its recent quarterly EPS of $1.24 came from tariff refunds. The company received $107 million and expects an additional $38 million.

Some companies plan to return the refunds directly to customers or use them to fund price reductions.

FedEx plans to distribute its roughly $800 million refund to shippers and consumers in stages. Costco said it intends to return the money in some form to customers who bore the cost of the tariffs. Amazon said that where tracking specific customers proves difficult, it will use the funds to keep product prices lower.

Not all companies are coming out ahead, however. Caterpillar, the construction and mining equipment manufacturer, booked $392 million in refund gains but expects its total tariff payments this year to reach $2.2 billion — far exceeding what it stands to recover.

The refunds stem from legal rulings over tariffs the Trump administration imposed on major trading partners under the International Emergency Economic Powers Act, enacted in 1977.

The US Supreme Court ruled that the IEEPA does not grant the president authority to impose tariffs, after which the US Court of International Trade ordered the Trump administration to begin refunding tariffs to importers.