Nike, FedEx Reap Billions From Tariff Refunds: Who Actually Gets To Keep Them?

Nike benefits from nearly $1 billion in tariff refunds, while FedEx plans to return its $800 million refund to customers.

• Nike and FedEx received major tariff refunds, but Nike can keep its $986 million refund as an earnings boost.
• FedEx plans to return its roughly $800 million tariff refund to customers because the payments are traceable.
• Nike’s Q4 was boosted by tariff refunds, while FedEx’s growth came from stronger operations. 

Nike Inc. (NKE) and FedEx Corp. (FDX) stocks are in focus as billions of dollars in tariff refunds reshape corporate balance sheets following the Supreme Court’s ruling against a key Trump tariff policy. While Nike stands to retain nearly $1 billion in earnings, FedEx plans to return its roughly $800 million refund to customers. 

Why Business Models Determine Who Gets Paid 

Nike and FedEx are showing how the same tariff refund can produce radically different outcomes for U.S. businesses. The two companies received $986 million and $800 million, respectively, after the Supreme Court invalidated a central component of President Donald Trump's tariff strategy. Yet one company can recognize the money as a financial benefit, while the other must largely return it to customers.

According to a Wall Street Journal report, more than 40 companies in the S&P 500 have disclosed about $9.6 billion in tariff refunds, with roughly $2.1 billion already received. 

Nike Keeps The Benefit

Nike paid import duties on merchandise it owned and incorporated those expenses into the prices of shoes and apparel. Because individual tariff payments cannot be linked to particular shoppers after the costs become part of retail pricing, Nike has no practical customer-by-customer reimbursement process.

Nike received $302 million of the refund in its fiscal fourth quarter, with nearly all of the remaining $684 million arriving by mid-July. The money boosts its earnings without needing to be repaid. 

Nike stock inched 0.4% higher overnight, ahead of Thursday. 

FedEx Takes A Different Route

FedEx handled tariffs differently because it collected duties and taxes while transporting goods belonging to other parties. Each payment remains linked with a shipment and customer, making the money traceable. The company therefore plans to distribute its roughly $800 million refund to shippers and consumers beginning in August.

FedEx stock edged 0.2% lower overnight, heading into Thursday. Therefore, the distinction could influence earnings, cash flow and shareholder returns across retailers, manufacturers and logistics providers. 

Nike’s Profit Gets A Tariff Boost, FedEx Growth Comes From Operations

Nike had a strong-looking Q4, but much of the improvement came from its tariff refund, not from selling more products. Its $0.72 earnings per share included a $0.52 benefit from the tariff recovery. Without that benefit, EPS would have been only $0.20.

Nike's profit jumped sharply, but its underlying business remained weak. Revenue fell 1%, while problems in China and Nike's direct-to-consumer business continued. FedEx also reported strong Q4 results, but for a different reason. Revenue shot up 13%, with $6.31 in earnings per share, because of better shipping volumes, pricing, and cost controls.

While NKE stock crashed 47% in the past twelve months, FDX stock has surged 76%.

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