alt Hacker NewsWasn't the whole point of selling your right to refunds that the initial tariff was so onerous to businesses that they needed a cash injection to stay afloat.
Don't sell your right to your tariff refund is one of those things that sounds good in principle, but falls apart when you apply some sense to it.
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Is a 20 cent on the dollar or so payment for the new tariff expense really going to save a company that much on the bubble?
I'm sure there are a few exceptional cases, but that doesn't seem to me like it would be the typical cases. A company needing to pay $100 in tariffs but then the $20 of cash infusion being the thing that saves the day seems rather unlikely.
I'd say it's more likely this was a profit center to more companies than it was a life line. As in they passed the tariff down to their consumers, and also collected the 20% as a cash payment to juice the bottom line.
More common though would be simply a way to help defray some costs and provide certainty.
>Wasn't the whole point of selling your right to refunds that the initial tariff was so onerous to businesses that they needed a cash injection to stay afloat.
No? You also do it for certainly. "One bird in hand beats two in the bush" and all that. You see this occurring outside of tariff refunds, with businesses selling debts to debt collectors for pennies on the dollar, or bond holders selling high risk bonds (eg. Argentina) for steep discounts.