As the ongoing trade tensions between the US and other countries continue to impact businesses, many have been receiving tariff refunds as a result of legal challenges and negotiations. But what are businesses doing with these refunds? A recent survey by the Federal Reserve Bank of Atlanta’s Macroblog provides some insightful answers.

According to the survey of over 1,100 C-suite executives, the majority of businesses plan to keep or reinvest their tariff refunds rather than passing them on to customers in the form of lower prices. A staggering 75.2% of respondents said they would be keeping the cash, while 52.5% indicated that they would reinvest it into their businesses. Only 14.8% said they would use the refunds to lower prices.

So why are businesses choosing to hold onto their tariff refunds rather than passing them on to customers? One possible reason is that many businesses are looking to invest in their operations and growth, rather than simply passing on savings to consumers. As one executive noted in the survey, “We’re using the refunds to reinvest in our business and fund new initiatives.”

Another reason could be that businesses are hesitant to lower prices too significantly, especially if they are unsure of how long the tariff refunds will last. As one executive put it, “We don’t want to create a false sense of security by promising lower prices that may not be sustainable in the long term.”

It’s worth noting that the survey results vary depending on the industry and size of the business. For example, smaller businesses were more likely to say they would use their tariff refunds to lower prices, while larger businesses were more likely to reinvest them.

Overall, the survey results suggest that businesses are looking to use their tariff refunds in a strategic way that will benefit their operations and growth in the long term, rather than simply passing on savings to customers. However, it’s important to keep in mind that these refunds may not last forever, and businesses should be prepared for any changes in the trade landscape.