They Bet Against Trump’s Tariffs. Now They Stand to Make Millions

Wired

by Joel Khalili

February 20, 2026

AI-Generated Deep Dive Summary

Investment firms are poised to reap significant profits after the U.S. Supreme Court invalidated President Donald Trump’s tariffs on foreign goods. By purchasing refund claims from importers at a low cost, these firms bet against Trump's policy, anticipating a court ruling that would invalidate the tariffs under the International Emergency Economic Powers Act (IEEPA). This strategic move has transformed into a lucrative opportunity, with potential returns exceeding eight times their initial investment for some players. Hedge funds and specialist firms like 117 Partners and Asset Enhancement Solutions were among those who engaged in this trade. They bought refund claims worth tens of millions of dollars by offering immediate cash payments to importers seeking liquidity. Thomas Braziel, founder of 117 Partners, personally invested $925,000 in these claims, reflecting confidence in the legal challenge against Trump's tariffs. However, while the Supreme Court ruling was a win for these firms, uncertainty remains regarding refunds. The court did not explicitly mandate refunds, leaving importers and investors in limbo as the matter is sent back to lower courts. The administration may contest any rulings requiring refunds, further complicating the process. This legal ambiguity leaves investment firms deciding whether to sell their claims now or wait for a final resolution. For tech readers, this story highlights the intersection of finance and law, showcasing how Wall Street strategies can influence market dynamics. The outcome underscores the potential financial impact of legal challenges on industries, particularly in technology sectors where trade policies can significantly affect global markets. As Friedman noted, "it’s a much

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Originally published on Wired on 2/20/2026