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Monetize IEEPA Tariff Claims Today
Before the Supreme Court Decision is Rendered
IEEPA Tariff Claims can be Sold Now
at a Discount
 If the Trump Administration wins the pending Supreme Court Decision, companies will be unable to receive refunds of the IEEPA tariffs they paid. Companies that paid IEEPA tariffs may be entitled to substantial refunds—but the timing and outcome of the pending Supreme Court decision remain uncertain. Asset Enhancement Solutions, LLC “AES” has teamed up with a few hedge funds that are purchasing potential tariff-refund claims now, providing companies with immediate cash and eliminating legal and timing risk.
The current market for these claims prior to the Supreme Court Decision are as follows:
- 25% - 35% for Reciprocal Tariff claims
- 15% - 25% for Fentanyl based claims (Canada, Mexico, and China)
- Minimum Tariff Claim Amount currently is $5 million. We may soon have a Buyer with a minimum of $2 million, so please check in with us periodically if you presently do not qualify
For a detailed discussion of how this process works see below
Some of the Pros and Cons of selling your IEEPA Claim before vs. after the Supreme Court Decision include the following:
Pros & Cons:
Selling Now vs. Waiting for the Supreme Court Decision
Selling Now (Before Supreme Court Decision)
Pros:
- Guaranteed cash immediately
- Transfer Risk to the Buyer – If the Court rules against refund eligibility, sellers who monetized early keep the cash received and avoid receiving nothing
- Zero downside risk if the Court denies refunds
- Avoids ongoing legal, administrative, and opportunity costs
- Transfers litigation and policy risk to sophisticated buyers
Cons:
- Selling at a discounted value vs. full potential claim
- If the Supreme Court rules in favor of refunds, seller may have left money on the table
Waitng for the Supreme Court decision
Pros:
- If the decision is favorable, the company may receive 100% of the claim value
- No discount or transaction costs
Cons:
- Must wait—refund timeline could be long
- No guarantee of recovery; the claim may prove worthless
- Opportunity cost of foregone liquidity
- Possible additional legal/admin costs while waiting
- Market for selling claims may be tightened after a Supreme Court decision
How the Process of Selling an IEEPA Tariff Claim Works
Concept is:
- Company X has paid ($10 Million) in tariffs since April 7th.
- Company X wants to de-risk prior to the outcome of the Supreme Court decision (hearing was held November 5th and we still await decision).
- Company X sells (50%, 100%, or some other percentage) of its tariff ‘claim’ to Buyer A in the form of a participation.
- The Trade is nonrecourse to Company Xas to the outcome of the Supreme Court decision; but recourse to Company X only if the amount / validity of the claim is proven to be false, or too high.
Process for Selling IEEPA Tariff Claims:
- Company X has paid $10 million in IEEPA Tariffs.
- Company X agrees to “sell” its tariff claim to Buyer for 25% of the claim amount, i.e.. $2.5 million.
- Buyer sends Seller a Confirm, and then ultimately a Participation Agreement which will govern the transaction.
- IMPORTANT – Company X retains its status as the “Plaintiff” / “Claimant” since these tariff claims are not transferable.
- Buyer might ask Company X to commence litigation for the return of the IEEPA tariffs paid. The rationale for this is that there is a possible outcome in which the Supreme Court overturns the Administration, but only those parties who have commenced actual litigation are entitled to refunds. Thus, Company X will need to commence litigation in order to receive their refund.
- Buyer will continue to monitor the situation and inform Company X of developments.
- If and when the refund is received on the claim, Company X will receive the refund and forward to the Buyer.
Key Points:
- Company X (as seller of the Claim) must be a financially healthy enough counterparty for Buyer A to enter into what could be a 2-to-3-year process (allowing time to receive the refund if the Trump Administration loses the Supreme Court case).
- Legal fees are split going forward based on risk percentage. If Company X sells 100% today but continues to pay tariffs, Buyer A will pay 100% of legal costs today but that will decline proportionally as Company X incurs new tariff claims, unless there is an agreement for Company X to sell all tariff claims to Buyer A as they are incurred.
- Buyers are purchasing tariff claims now at a low percentage due to the high risk involved prior to the outcome of the Supreme Court decision. Should the Trump Administration lose the Supreme Court case and the Administration is ordered to refund IEEPA tariffs, there will be a market to purchase tariff claims at higher percentages due to the lower risk involved. Asset Enhancement Solutions, LLC will continue to be involved with assisting companies monetize these claims. There would likely be an administrative process instituted such that companies that have paid these IEEPA tariffs will need to file special claims and wait to get refunded by the government. The process of receiving the refund payment from the government could take up to 12-to-18-to-24 months.
- It is estimated that Buyers would likely then pay 60%++ as the purchase would be about timing of the refund, not about which way the Supreme Court would rule. We have monetized a significant amount of ERC’s (Employee Retention Credit) over the past few years and are still involved monetizing these claims. Buyers were purchasing these claims at a discount of approximately 85%. Thus, the estimate of 60% is very preliminary at this point in time.
Important to remember that the transaction is non-recourse to Company X if the Trump Administration is successful. Company X will not have to repay the Buyer if the Court rules in favor of the Trump Administration.
About Asset Enhancement Solutions, LLC
Asset Enhancement Solutions, LLC ("AES"), is a financial advisory firm that provides both Capital Raising and Consulting Services to companies considering important transactions such as debt or equity financing, selling a company or acquiring a company. We specialize in arranging debt and equity financing for companies with challenges. These include unfavorable challenges such as operational, legal, tax, financial or liquidity issues or positive challenges such as opportunities for growth, acquisition, and long-term success. AES works with middle market companies, small businesses, and public companies.
We never shy away from adversity and difficult challenges; we embrace and thrive on it. We have the experience and expertise needed to find options and creative financial solutions for any size business. The firm was founded on the principle of experienced operating executives providing valued-added services to clients at a reasonable fee structure.
AES added the processing of PPP Loans to its services in April 2020. As an Agent for multiple PPP lenders, AES processed over 1,500 Paycheck Protection Program (PPP) loans totaling $150,000,000.
Seeing that some businesses were waiting 12 months or longer to receive their ERC Refunds from the IRS, in March of 2022 AES teamed up with a few lenders and hedge funds that would either advance funds against ERC Refund Claims or purchase ERC Claims at a discount. This financing solution proved to be a lifeline for many companies. AES monetized ERC Claims totaling $50 million.
Please reach out to us to discuss how we can help you overcome your challenges and grow your business.
We are here to help. Do not hesitate to contact us at any time:
Phone: 516-767-0100
After Business Hours please leave a voice message and your message will be forwarded to us 24/7.
Email: info@assetenhancement.com
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