Asos Demands £7 Million US Tariff Refund After Supreme Court Reversal in February
Online fashion retailer Asos has commenced the process of claiming GBP#7 million in tariff refunds from the United States government. This action follows a February US Supreme Court ruling that deemed the so-called "Liberation Day" tariffs, enacted by former President Donald Trump, an overreach of presidential authority. The decision has enabled what could become the largest repayment programme in US history, impacting hundreds of thousands of firms.
The US Court of International Trade in March mandated customs officials to refund over USD#160 billion (GBP#121 billion) previously collected under the International Emergency Economic Powers Act (IEEPA). This opens the door for approximately 330,000 importers to receive reimbursements.
An online portal for businesses to apply for these refunds opened on Monday. As of early April, more than 56,000 importers had initiated claims totalling USD#127 billion. While some applicants reported a seamless experience with the new system, others encountered error messages, suggesting high traffic volumes.
Asos disclosed its pursuit of these refunds while reporting a reduction in its pre-tax loss, which narrowed to GBP#137.9 million for the six months ending 1 March, an improvement from GBP#241.5 million a year prior. The company also stated it had implemented measures to mitigate inflationary pressures and supply chain disruptions linked to the conflict in the Middle East.
US Customs and Border Protection anticipates that successful applicants will receive refunds, along with any applicable interest, within 60 to 90 days. However, individual consumers, who indirectly bore the cost of these tariffs through higher prices, are not expected to be compensated.
