Wall Street Bets on Tariff Refunds If Court Rules Against Trump

Wall Street banks are arranging bets on President Donald Trump’s tariffs being struck down by the Supreme Court — long-shot trades that could pay off handsomely for hedge funds betting against the legality of the administration’s flagship policy.

Jefferies Financial Group Inc. and Oppenheimer & Co. are among firms brokering the deals, matching investors with companies that have paid tariffs to import goods into the US, according to people with knowledge of the matter and correspondence seen by Bloomberg News.

Representatives for Jefferies and Oppenheimer declined to comment.

In the trades, the importing companies essentially sell to investors any ...