Asos Pursues £7m US Tariff Refund
Online fashion retailer Asos is seeking refunds from the United States for the £7 million worth of tariffs it paid during the first half of its financial year.
In February, the US Supreme Court invalidated the so-called "Liberation Day" tariffs imposed by former President Donald Trump last year. The court ruled that the president had exceeded his authority, thereby enabling the largest tariff repayment program in history.
Asos announced it has initiated the process of claiming refunds. Businesses have been able to apply since Monday, when an online portal was launched for this purpose. While some users reported a smooth experience, others encountered error messages.
Potentially, hundreds of thousands of firms could recover some of the tariffs paid.
The announcement coincided with Asos reporting a reduction in losses as it continues its turnaround strategy.
For the six months ending 1 March, Asos recorded a pre-tax loss of £137.9 million, an improvement compared to a £241.5 million loss in the same period the previous year.
The company was widely regarded as a "pandemic darling" due to its growth during the surge in online shopping amid Covid-19 lockdowns.
Since then, Asos has faced a decline in consumer demand and increased competition from low-cost Chinese competitors such as Shein.
Asos also stated it has taken "proactive actions to help mitigate inflationary impacts and supply chain issues arising from the conflict in the Middle East," and that it continues to monitor developments closely.
Refund System Launches
In March, the US Court of International Trade directed customs officials to refund over $160 billion (£121 billion) collected in tariffs, potentially benefiting approximately 330,000 importers.
The refunds pertain to duties charged under the International Emergency Economic Powers Act (IEEPA).
By early April, more than 56,000 importers had completed the necessary steps to apply for refunds via the online portal, submitting claims totaling $127 billion.
On Monday, a small business owner told the BBC he was able to navigate the portal successfully just minutes after it opened.
"The system is currently experiencing high volume, please try again later,"
was the message received by another individual who reported difficulties to the BBC's US partner CBS News when attempting to file a claim. He described the system as appearing to be "overwhelmed."
US Customs and Border Protection has indicated that successful applicants can expect refunds, including any applicable interest, within 60 to 90 days.
However, some individual consumers, who were indirectly affected by the tariffs through increased prices, are not expected to receive compensation.
