Some U.S. Companies Use Tariff Refunds for Employee Benefits

Some U.S. companies are using portions of tariff refunds to provide additional compensation and retirement benefits to employees after the Supreme Court struck down President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act.

Some U.S. companies are directing portions of tariff refunds toward employee bonuses and 401(k) contributions after the Supreme Court struck down Trump-era IEEPA tariffs. [Photo: Harrison Keely, Wikimedia Commons]

The Supreme Court ruled on Feb. 20 that the administration had exceeded its authority by using IEEPA to impose the broad tariffs. More than $175 billion in tariff collections became potentially subject to refunds, according to estimates cited by Reuters.

In March, U.S. Trade Representative Jamieson Greer urged companies receiving refunds to consider giving the money to workers as bonuses or raises.

As refunds began reaching importers, some companies said they would use portions of the money for employees.

Williams Sonoma said in its second-quarter earnings report that it would allocate $10 million for one-time payments into eligible employees’ 401(k) accounts in recognition of their work during the tariff period.

TJX, which received $331 million in tariff refunds, said it accrued $112 million in additional expenses for year-end incentive compensation and discretionary bonuses for eligible employees globally.

The U.S. Treasury had distributed more than $100 billion in tariff refunds by the end of July, according to a U.S. Customs filing reported by Reuters. The refunds were paid to importers that had previously remitted the duties.

The use of refunds varies among companies. Some have said they would lower prices or pay down debt, while others are directing portions of their refunds toward employees.