Companies have finally gotten $71 billion in tariff refunds, but they're using it to offset inflation caused by the Iran war

Companies have finally gotten $71 billion in tariff refunds, but they're using it to offset inflation caused by the Iran war describes how tariff relief is arriving as new cost pressures build. The U.S. Customs and Border Protection issued $49.2 billion in refunds in June, bringing total refunds to about $71 billion, or over 60% of the $166 billion available after the Supreme Court struck down certain tariffs under the International Emergency Economic Powers Act in February. Even as companies recover last year’s import-tax costs, the money is being used to counter other inflationary factors. PepsiCo’s CFO Steve Schmitt said the company expects additional pressure from commodities and intends to use refunds to offset commodity inflation. PepsiCo CEO Ramon Laguarta linked consumer changes to the Iran war’s impact on gas prices, reducing discretionary spending and visits to convenience stores. McCormick CFO Marcos Gabriel said $31 million in refunds will counter higher costs after price hikes tied to tariffs and constrained freight capacity. Analysts cited Goldman Sachs warnings that prices may stay elevated if oil rises, with a scenario of oil above $100 per barrel increasing core inflation by 3 to 4 basis points, while Bank of America expects refunds to offset energy and shipping costs.