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The trades involve importing companies selling to investors any future rights to claim refunds on their tariff bills at a discount, with the banks arranging the deals taking a cut. The bets hinge on the success of complex legal arguments and could lead to payouts for those placing the bets if the Supreme Court rules in their favor, with the government potentially owing back to companies the bulk of the net customs revenue resulting from the tariff hikes.
“The solution provides the ability to de-risk the outcome and receive a guaranteed payment now, without having to wait for final court rulings,” according to a pitch by Oppenheimer seen by Bloomberg. In it, the firm said that its special-assets team has arranged, since 2021, more than $1.6 billion of similar trades over US-China tariffs that predate Trump’s latest wave of levies.
