Asos Demands £7 Million Tariff Refund from US After Supreme Court Overturned Levies
Online fashion retailer Asos is actively pursuing refunds from the United States for GBP#7 million in tariffs it paid during the first half of its financial year. This action follows a landmark US Supreme Court decision in February, which struck down the so-called "Liberation Day" tariffs imposed by former President Donald Trump. The court ruled that Trump had exceeded his executive powers, thereby paving the way for one of the largest repayment programmes in US history.
Asos confirmed it commenced the refund process as soon as an online portal became available to businesses on Monday. While some companies reported a straightforward application experience, others encountered error messages, indicating system strain.
Extensive Reimbursement Programme
The US Court of International Trade previously ordered customs officials in March to refund over USD#160 billion, or approximately GBP#121 billion, collected in tariffs. This ruling potentially benefits around 330,000 importers. The tariffs in question were levied under the International Emergency Economic Powers Act (IEEPA).
By early April, more than 56,000 importers had already completed the necessary steps to apply for refunds, with their combined claims totalling USD#127 billion. US Customs and Border Protection has indicated that successful applicants can anticipate receiving refunds, along with any applicable interest, within 60 to 90 days. However, individual consumers who bore the indirect cost of these tariffs through inflated prices are not expected to be compensated directly.
Asos announced its refund pursuit while reporting a reduced pre-tax loss of GBP#137.9 million for the six months ending 1 March, an improvement from the GBP#241.5 million loss recorded a year prior. The company also stated it had implemented "proactive actions to help mitigate inflationary impacts and supply chain issues arising from the conflict in the Middle East," and continues to monitor regional developments closely.
