(Financial Times Europe, Aime Williams, 05 May 2026)
Small American businesses like Dancing Bear Toys, gemstone shops, and nut stores have been excluded from the tariff refund mechanism deemed illegal by the Supreme Court. Only “importers of record” can apply on the Customs and Border Protection portal, while those who paid tariffs through price increases from suppliers have no access to refunds.
This creates a huge advantage for large corporations able to import directly, while small retailers, already hit by tariffs, inflation, and higher energy costs due to the war in Iran, see their margins eroded with no chance of recovery. Suppliers have raised wholesale prices by up to 40% and are unlikely to lower them even if they receive refunds.
Exclusion of small businesses
“Only the ‘importer of record’ can file a claim on the Customs and Border Protection website. This excludes small businesses that do not import directly but have paid tariffs through higher prices or surcharges.”
Complicated and inaccessible process
“Less than one-fifth of importers have activated the account necessary for refunds. The first phase will process less than two-thirds of the items subject to illegal tariffs.”
Prices destined to remain high
“Suppliers will not lower prices even if they receive refunds. Small retailers will continue to pay more with no chance of recovery.”
“There is no refund”
“‘There is no refund. Only a handful of people will be able to access it and I guarantee it won’t reach me. It’s simply exasperating.’”
Practical impossibility
“‘There’s no way in hell small businesses will get this money back, only large corporations will receive refunds.’”
Suppliers will not return the money
“‘I guarantee our suppliers will not lower prices again, even if they get refunds and no longer pay tariffs.’”
(Excerpt from the newsletter by Giuseppe Liturri)
