• Tariff refund status: U.S. refunds began across three phases but slowed after the U.S. government appealed to the Court of International Trade, prompting buyers to hold received funds in escrow pending legal outcomes.
• Supplier discount removal: Discounts offered by suppliers to offset heavy duties were discontinued in February after tariffs were ruled illegal, though potential 10% to 12.5% penalty tariffs under Section 301 remain negotiation points.
• Direct exporter recoveries: Apparel exporters report mixed refund experiences, where certain buyers have passed through refunds while others have withheld reimbursements on prior 5% discounts.
• Margin and demand outlook: Margins are expected to improve as heavy supplier discounts dissipate and crude prices ease to the $70s, supported by stable consumer demand across key export markets.