U.S. Customs Issues $49.2 Billion in Tariff Refunds in June

U.S. Customs and Border Protection issued $49.2 billion in tariff refunds in June. The payments raised the cumulative total to about $71 billion, more than 60 percent of the $166 billion available after the Supreme Court struck down tariffs under the International Emergency Economic Powers Act in February.

McCormick & Company received a $31 million refund. The company's chief financial officer said the majority of the amount will offset elevated expenses after the firm raised prices twice in the past year due to tariffs and limited freight capacity. PepsiCo Chief Financial Officer Steve Schmitt said the company expects continued pressure on commodity costs.

The company's CEO stated that the Iran conflict and higher gas prices have reduced consumer discretionary spending and convenience-store visits. Wholesale inflation declined last month as energy prices fell. Goldman Sachs chief U.S.

Economist David Mericle stated that oil above $100 per barrel could add 3 to 4 basis points to monthly core inflation. BJ's Wholesale Club President and CEO Bob Eddy said tariff refunds would help reduce consumer prices by half a percent. Section 122 tariffs are scheduled to expire later this month, while Section 301 tariffs apply only to goods from certain countries.

Rebecca Homkes of the London Business School stated that these narrower measures are less likely to match the scale of the earlier IEEPA tariffs.