Cantor Fitzgerald offers to buy the rights in potential refunds from companies that have paid Trump’s tariffs

Cantor Fitzgerald, a financial services company led by the sons of US Commerce Secretary Howard Lutnick, has offered to buy the right to hundreds of millions of dollars in potential refunds from companies that have paid Trump’s tariffs.

The offer means that the sons of the pro-tariff commerce secretary, Kyle and Brandon, have made a way for investors to bet that President Donald Trump’s signature tariffs will be struck down in court. 

Lutnick has been one of the most vocal supporters of the president’s tariff policies. According to him, tariffs can potentially raise “hundreds and hundreds of billions of dollars” in revenue for the US. His reason is that the need for Americans making under $150,000 to pay taxes will eventually be eliminated. 

Here’s the tariff buy deal

According to the court, if Trump’s tariffs are permanently blocked, businesses that began paying “Liberation Day” tariffs on April 2 could be refunded, with interest. Now, Cantor Fitzgerald is jumping at this opportunity. 

Here is the deal. According to reports,  a representative from Cantor said the firm is willing to trade tariff refund rights for 20% to 30% of what companies have paid in duties. 

The representative wrote, “So for a company that paid $10 million, they could expect to receive $2-$3 million in a trade […] We have the capacity to trade up to several hundred million of these presently and can likely upsize that in the future to meet potential demand.”

Some companies are sold

Some companies are sold. It is too suspicious that the 20-year-old made the decision by themselves. There are arguments that most companies raised prices to offset the cost of tariffs; therefore, it is the consumers who were affected most. 

Also, because of an uncertain timeline and mounting financial pressures, some companies may decide it’s wiser to accept the offer.

In addition, others don’t want to deal with the court directly. Ryan Petersen, CEO of the logistics technology company Flexport, said, “When you file those things today, it takes six to 12 months to get your money back once approved, it’s a physical check that arrives in the mail […] I think it may be attractive for some people.” 

Experts say the deals are used by financial firms seeking to profit from potential legal settlements. Many lawsuits can take years to resolve, and the structure can allow individuals and companies to get money upfront or have their lawyer fees covered. 

According to US Customs and Border Protection data,  billions of dollars have been collected under Trump’s new tariff policies. Experts estimate nearly $14 billion could be refunded if the ruling is upheld on appeal.

According to reports, Cantor has already made a major deal. “We’ve already put a trade through representing about ~$10 million of IEEPA Rights and anticipate that number will balloon in the coming weeks,” the Cantor representative claimed.

At 20-30 cents on the dollar their clients are pricing in better than 3:1 odds of an overturn.

About 3x the current odds on your polymarket. pic.twitter.com/KsF9wb2uMX

— Dave Rekuc (@DaveRekuc) July 21, 2025

On the other hand, Polymarket thinks that Trump will not need to refund the tariffs. Only 11% of the bettors think that Trump will do the refund.

Lutnick says he is not involved

Kristen Eichamer, press secretary for the Department of Commerce, said that Lutnick is not aware of the decision. She said that Lutnick has no insight or strategic control over Cantor Fitzgerald.

She added, “He has fully complied with the terms of his ethics agreement with respect to divesture and recusals and will continue to do so.”

However, according to Tim Meyer, a professor of international business law at Duke University School of Law, the bank’s decision has revealed what those with connections to the administration think about the merits of the tariffs.

KEY Difference Wire helps crypto brands break through and dominate headlines fast