The federal government began accepting tariff refund requests April 20, a relief for companies that struggled under the weight of the Trump administration‘s import policies. But for some small businesses, the refund won’t make up for a decline in sales and lost customers.
The new refund system only reimburses reciprocal tariffs enacted last year by Trump under the International Emergency Economic Powers Act, which placed duties across-the-board on nearly all imported products. In February, the Supreme Court of the U.S. ruled that the statute does not authorize the president to impose the tariffs. Other tariffs approved by Congress or named in various trade acts remain in effect.
While the refund program is a welcome development, small companies like Princess Awesome remain concerned about the future. The Silver Spring company imports colorful children’s clothing from a factory in Bangladesh. A potential refund for the tariffs it paid doesn’t necessarily mean the company is out of the woods.
While Princess Awesome is on track to get its money back, the timeline is murky and the owners worry the business could be financially drained months before it sees even a partial refund.
“We can limp along at this level for another year, maybe 18 months,” said co-founder Eva St. Clair. “I don’t know if we’ll ever get the full amount back. That seems like more to hope for.”
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