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Asos demands £7m from US as firms rush to claim tariff refunds
Online fashion retailer Asos is seeking refunds from the US for the £7m worth of tariffs it paid in the first half of its financial year.
In February, the US Supreme Court struck down the so-called "Liberation Day" tariffs Donald Trump imposed last year, saying the president had overstepped his powers, and paving the way for the biggest repayment programme in history.
Asos said it had begun the process of pursuing refunds, which businesses have been able to do since Monday when an online portal opened for them to apply through. Some reported a smooth experience while others received error messages.
Hundreds of thousands of firms could potentially win back some money.
Asos made the announcement while reporting a narrowing in losses as it continues with its turnaround plan.
It made a pre-tax loss of £137.9m in the six months to 1 March, compared with a £241.5m loss a year earlier.
The company was widely considered a "pandemic darling" as it benefited from a boom in online shopping during Covid lockdowns.
It has since experienced a downturn as consumer demand weakened and in the face of greater competition from cheap Chinese rivals such as Shein.
Asos added it had taken "proactive actions to help mitigate inflationary impacts and supply chain issues arising from the conflict in the Middle East", and said it continued to monitor developments closely.
In March, the US Court of International Trade ordered customs officials to refund the more than $160bn (£121bn) the government had collected in tariffs, putting roughly 330,000 importers in line for potential reimbursements.
The refunds relate to levies charged under the International Emergency Economic Powers Act (IEEPA).
As of early April, more than 56,000 importers had completed the necessary steps to apply for refunds online when the portal opened, with their claims worth $127bn.
On Monday, one small business owner told the BBC he was able to find his way through the portal just minutes after it opened.
However, another told the BBC's US partner CBS News that when he tried to file a claim he received a message saying: "The system is currently experiencing high volume, please try again later."
He said the system appeared to be "overwhelmed".
US Customs and Border Protection has said successful applicants can expect refunds, as well as any applicable interest, to be paid in 60 to 90 days.
However, some individual consumers, who were hit by the tariffs indirectly through higher prices, are not expected to be compensated.
Source: BBC
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