EMR · 10-Q · 2026Q2 · Full report

Trade Policy and Tariffs

EMERSON ELECTRIC CO · 2026-08-04 · Importance 47 · Surprise 60

In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs. Following an April 20, 2026 U.S. Customs and Border Protection refund portal launch, Emerson filed claims and received $82 million of tariff refunds during the three months ended June 30, 2026, equal to $0.11 per share. The refunds were recorded in cost of sales and increased gross margin, while the timing and amount of additional refunds remain uncertain.

Key facts

• Q3 FY2026 IEEPA tariff refunds recorded: $82 ($0.11 per share) benefit recorded in Cost of sales during the three months ended June 30, 2026. source
• Nine months tariff refunds of $82 ($0.11 per share) contributed to gross margin increase, partially offset by negative impact related to timing of software renewals. source