Philips and Pandora have declared their intention to submit requests for tariff refunds after a ruling by the U.S. Supreme Court in February, which deemed the tariffs imposed by former President Donald Trump illegal. This decision comes at a critical time as companies around the globe are battling the effects of tariffs on their earnings.
In this context, Roy Jacobs, CEO of Philips, explained in an interview with CNBC that the company will seek a refund of the tariffs in line with government policies. He emphasized that Philips prefers a business environment free from tariffs and trade barriers, as it aims to provide the best services to patients.
Details of the Event
Following the launch of a portal by the U.S. administration to process refund requests, it is expected that the total compensation could reach approximately 175 billion dollars, according to information from the court. The first batch of refunds is scheduled to be issued by May 11, as reported.
For her part, Berta de Pablo-Barbier, CEO of Pandora, confirmed that the tariffs represented a barrier to profits in the first quarter. She noted that the company has not received any information regarding potential refunds, making it difficult to rely on them for financial planning.
Background & Context
Historically, the United States imposed a series of tariffs on imported goods as part of a trade policy aimed at protecting domestic industry. However, these tariffs have proven to negatively impact companies, prompting many to demand compensation. In February 2025, the Supreme Court ruling reflected a retreat from these policies, allowing companies the opportunity to reclaim paid tariffs.
It is worth mentioning that many major companies such as BMW, Daimler, and Continental have also reported the impact of tariffs on their financial results, but have not disclosed their intentions to file for refunds.
Impact & Consequences
Tariffs are an additional burden on companies, leading to increased costs that may be passed on to consumers through higher prices. Economists have indicated that these tariffs have a general inflationary effect on the U.S. economy, raising questions about how they will affect consumers in the future.
Although the refund process may involve over 330,000 importers, a recent survey from the CNBC CFO Council showed that companies planning to file for refunds do not intend to lower prices. This reflects companies' concerns that refunds may be seen as compensation for high costs rather than benefiting consumers.
Regional Significance
The Arab region is indirectly affected by these developments, as many Arab companies rely on the U.S. market to export their products. Changes in U.S. trade policies could lead to impacts on prices and costs in Arab markets, necessitating close monitoring by Arab companies.
In conclusion, these events highlight the importance of trade policies and their impact on the global economy, prompting Arab companies to prepare for potential challenges.