Core Viewpoint - U.S. companies are exploring new financial strategies to mitigate the impact of President Trump's emergency tariffs by selling their rights to potential government refunds to outside investors, creating a new market for these transactions [1][4]. Group 1: Company Actions - Kids2, a company that produces 95% of its toys and infant products in China, is one of the firms engaging in this strategy [1]. - The CFO of Kids2, Mark Mintman, described the transaction as a "cost recovery action" and learned about the market for selling potential refunds during a meeting with bankers [2]. - Kids2 received $2 million from the sale of its refund rights, which is a fraction of the $15 million it had paid to U.S. customs through September [8]. Group 2: Market Dynamics - Under the agreements, companies receive an upfront payment for a fraction of the potential refund and retain that amount if the tariffs are overturned, while giving up the remaining balance to investors [3]. - If the tariffs are upheld, companies keep the upfront payment, and investors receive nothing [3]. - This new market mirrors existing ones for selling future payments from structured lawsuit settlements and lottery-winning annuities [4]. Group 3: Legal and Timing Considerations - There is pressure from hedge funds to finalize these transactions quickly, with one hedge fund requiring the deal to close before the Supreme Court's oral arguments [6][7]. - The Supreme Court's ruling timeline remains uncertain, with the Trump administration seeking a quick decision [7].