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Trump’s Commerce Secretary Loves Tariffs. His Former Investment Bank Is Taking Bets Against Them
A subsidiary of Cantor Fitzgerald, which is run by the sons of US Commerce Secretary Howard Lutnick, is letting clients essentially bet that President Donald Trump’s tariffs will be struck down in court.
Traders at the firm’s investment banking subsidiary, Cantor Fitzgerald & Co., say they have the capacity to buy the rights to hundreds of millions of dollars in potential refunds from companies who have paid Trump’s tariffs, according to documents viewed by WIRED. But the investment bank that made Lutnick a billionaire is now letting certain clients wager that Trump’s tariffs will eventually be ruled unlawful, at which point companies that have paid the import duties can apply to get their money back. In response, there was a flurry of lawsuits, including one from a group of small businesses that sued the Trump administration in the US Court of International Trade (CIT), arguing that the president exceeded his authority and the tariffs should be ruled illegal.
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