Car companies are reportedly expecting a combined $2.3 billion in refunds on tariff payments.
As Reuters reported Thursday (April 30), automakers have begun logging that anticipated income on their books, making them some of the first companies to quantify their refunds.
Businesses began applying for their share of a $166 billion pool of reimbursements last week, following a Supreme Court decision that declared some of the White House tariffs illegal.
Ford is expecting a refund of $1.3 billion, with General Motors anticipating that it will recover $500 million in import taxes. Mercedes-Benz also said it recorded a refund onto its books for its first quarter, Reuters added.
According to the report, these refunds have been logged for accounting purposes and helped the car companies’ bottom lines. However, the automakers said it’s not clear when the refunds would arrive, due to the uncertainty around the government’s process for issuing payments.
Reuters added that companies seeking refunds might fall out of favor with the White House. President Donald Trump told CNBC last week that he would “remember” companies that chose not to seek refunds, without saying how they would benefit.
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Sherry House, Ford’s chief financial officer, said the company had a fiduciary duty to file suit for reimbursement, “really just for purposes of protecting our shareholders and getting in line to be able to receive the reimbursement.”
Meanwhile, PYMNTS Intelligence research has examined the impact of a year of tariffs on middle market companies, finding a clear pattern 12 months after Trump’s “Liberation Day.”
“A policy shock has evolved into a durable operating condition, where volatility is arguably the only constant, shaping how businesses plan, invest and manage risk,” PYMNTS wrote earlier this month.
“Across PYMNTS Intelligence’s Certainty Project, firms spanning sectors and geographic reach informed us that tariffs, or the anticipation of tariffs, impacted day-to-day decision-making, affecting not only costs but also confidence, demand and long-term strategy.”
The research found that tariffs had a “broad and persistent” impact on operations, with businesses reporting ongoing supply chain issues, cost increases and reduced profitability.
Early on, 45% of goods firms expected to raise prices, with just 5% planning that as a first response. Most companies wanted to first negotiate with suppliers or adjust sourcing strategies.
“But by September, that restraint had largely disappeared,” PYMNTS added. “By August, 9 in 10 goods firms had raised prices, along with more than 7 in 10 services firms. Even so, 75% of goods firms and more than half of services firms reported margin declines. Three in 4 CFOs had raised prices, yet 58% still reported falling margins. Nearly half also reported weaker customer demand.”
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