We know of a few car audio suppliers who have received tariff refunds as well as many larger companies who are now reporting refunds.
Garmin, which owns JL Audio, reported last week (late July) that it received $21 million in tariff refunds. It attributed part of a 14 percent gain in its recent marine sector revenue to the tariff refund. (All of JL Audio car, marine and home audio falls under Garmin’s marine sector). Garmin’s marine revenue with the refund in Q2 rose to $341 million, up from $299 million a year ago.
JVCKENWOOD Corp. in its recent financial report said the company received “a portion of refunds related to the US IEEPA tariffs” thus far.
Amazon announced last week (July 30) that it has received $600 million in refunds and that it plans to return some of the monies to customers where possible.
Automotive companies report they expect a total of approximately $2.3 billion in tariff refunds. Specifically, Ford said it is entitled to a $1.3 billion refund, and GM, $500 million.
We understand that PowerBass, which never raised its prices (except for a small percent increase on copper due to rising material costs) received a few small refunds, however those only covered small portions of what has been paid in. Again, the company has been absorbing the extra tariff costs rather than raising prices. The refund money is expected to be used to avoid any need for price increases and will also be put towards new product development.
Another car audio supplier confirmed it received a substantial refund but did not wish to be named.
General retailers who have said they will apply for refunds include Walmart, Home Depot, Target, Nike, General Motors, FedEx and Costco reports the New York Post.
The refunds come as the Trump administration levied new tariffs that effectively replace the previous 10 percent tariffs that expired in July. The new tariff impacts goods from over 80 countries at a rate of 10 or 12.5 percent, depending on the country. ABC News said the average tariff rate with this latest round is 11.1 percent but it should climb to 11.8 percent by the end of the year due to additional proposed tariffs. The Trump administration also imposed an additional 50 percent punitive tariff on goods from Canada.
Manufactures that charged dealers a tariff, should be refunding all or a majority of those tariffs to dealers if they receive a refund. Most manufacturers have now just added the tariffs to the previous dealer cost and effectively raising the dealer cost permanently and raking in the profits. All this while advertising special map prices and reducing dealer margins.