US Import Tariff Refunds Boost S&P 500 Corporate Earnings

Several major US companies are beginning to receive substantial refunds on import tariffs, providing a significant boost to their earnings amid earlier concerns that the reimbursement process would be slow and complex. According to the latest financial reports, more than 40 companies listed in the S&P 500 index have disclosed plans for refunds totalling approximately US$9.6 billion (around Rp151 trillion), with at least US$2.1 billion already received in cash. Apple leads the pack with nearly US$2.2 billion, followed by Nike with US$986 million. Logistics giant FedEx reported around US$800 million, while Amazon.com and General Motors recorded US$640 million and US$500 million, respectively. As of 31 July, US Customs and Border Protection (CBP) had received more than 252,000 refund applications related to tariffs deemed unlawful by the Supreme Court. Agency officials informed a federal court that they are processing refunds worth a total of US$128.7 billion. Nike disclosed it received US$302 million in the fiscal quarter ending in May, with nearly all of the remaining US$684 million received by mid-July. Apple noted that the tariff refund contributed 11 cents to its earnings per share, accounting for approximately 5% of its quarterly profit. Despite the large reported figures, not all of the amounts represent cash already in the bank, as companies employ different accounting methods to handle the funds. Interestingly, several firms plan to distribute the refunds to their customers. FedEx stated it would begin channelling the US$800 million to shippers and consumers starting in August, given its role as an intermediary required to collect duties and taxes. Costco, which previously faced a class-action lawsuit from consumers, also intends to pass the refunds on to customers at a level similar to the tariff costs they originally bore. Meanwhile, Amazon stated it would contact traceable customers to provide refunds or use the funds to maintain low prices for consumers.