Small businesses weigh tariff refunds as application portal opens

HADDONFIELD, N.J. (WPVI) -- While large companies such as FedEx and Costco have pledged to pass on any tariff-related savings to consumers, many smaller businesses are still trying to determine whether they can apply for refunds and how long the process might take.

At the English Gardener Gift Shop in Haddonfield, owners import groceries and treats from the United Kingdom.

"We have drinks from the U.K., crisps, or potato chips as we call them," said owner Gary Coleman.

The shop paid about $32,000 in tariffs last year, Coleman said, as it imports products from several countries.

"We do import from England, Ireland, Scotland and Wales, and some of the British and Irish companies also manufacture in China and India. So the tariffs are across the board from 35% down to 10," Coleman said.

Some of those costs were absorbed by the business, while others resulted in higher prices for customers. With a new opportunity to apply for refunds, Coleman said he hopes to recover part of that money.

"It looks like we can get something back, so I'm definitely going to try," he said.

An online portal opened this week for companies that paid tariffs to begin applying for refunds after the Supreme Court ruled that tariffs imposed by the Trump administration were not constitutional.

However, not all businesses will qualify.

Jonathan Doh, a professor of international business at Villanova University, said the criteria are specific and require that companies import products directly, rather than purchasing them from distributors.

"Many smaller businesses are, in turn, buying products from importers, and so those businesses that are not buying directly from the exporter will also not be eligible," Doh said.

That limitation affects businesses such as Bootlegger's Discount Fine Wines and Spirits in Glassboro, which buys its products through distributors.

"It feels as though they've passed on more than 100% of that. We buy from a distributor," said owner Kevin Ortzman. "As far as everything I've read, retailers will be challenged to be able to get any type of reimbursement."

In those cases, Doh suggested that small retailers consider negotiating with suppliers, particularly if those suppliers successfully receive refunds.

"That firm could say, 'Look, we know that you got a windfall from tariffs you collected -- some of which you passed on to us -- can you give us a 5% discount on our next couple of orders or something like that?" Doh said.

Organizations are now offering seminars to help businesses navigate the refund application process. Once a claim is approved, Customs and Border Patrol says the refund will take 60 to 90 days to be issued.