• On Monday, the U.S. opened up a web portal for companies to claim tariff refunds.
• The move comes following a Supreme Court ruling in February that deemed the Trump Tariffs ‘unconstitutional.’
• Citi analysts estimate that KSS will receive up to $550 million in refunds.

Shares of Kohl’s Corp. (KSS) rose over 7% by Tuesday noon and are on track for their best day in two months, driven by the buzz about a massive tariff refund the company expects to receive. 

On Monday, U.S. Customs and Border Protection launched a web portal for companies to file refund claims for goods imported into the U.S. that were subject to Trump tariffs.

Per the government website, the CPB is deploying “Consolidated Administration and Processing of Entries” or “CAPE” for importers to submit and process refund requests for duties imposed under the International Emergency Economic Powers Act.

Once the refund claim is accepted, valid refunds will be issued within 60 to 90 days. According to a Citi report earlier this month, Kohl’s is estimated to receive about $550 million in refunds.

The IEEPA Law

The official statement from the White House last year said that President Donald Trump used the IEEPA law to impose tariffs on imports from Canada, Mexico, and China, citing “extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl,” which led to the collection of $160 billion in levies from U.S. companies. 

But in February this year, the Supreme Court ruled that President Trump lacked the authority to impose such tariffs under the IEEPA and called his move “unconstitutional,” ultimately leading to a decision to refund companies that had imported goods into the U.S.

How Did Retail Traders React?

On Stocktwits, retail sentiment remained ‘neutral’ amid an 11x spike in messaging volumes over the last 24 hours.

One user on the platform noted that the anticipated refund amount amounts to multiple years' worth of profit. 

Another user commended the management’s ability to navigate the company even with tariffs in place.

At the time of publishing, over 3 million KSS shares changed hands, still below its three-month average trading volume of 4.7 million. The stock more than doubled in value over the past 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: AVAV Stock Rockets After Successful Laser Weapon Demonstration – Investors Cheer The New Drone Neutralizer