Fast fashion retailer Asos has announced it is pursuing a £7 million refund for US tariffs it paid during the first half of its financial year. The company stated it has initiated the process to reclaim these tariffs, which were imposed on products shipped to the United States in the six months leading up to March 1.
Supreme Court Ruling Sparks Tariff Refund Claims
This move follows a landmark decision by the US Supreme Court in February, which overturned former President Donald Trump's import tax policy. The court ruled that a 1977 law did not grant the president the authority to impose tariffs without congressional approval. Four days after the Supreme Court struck down his sweeping International Emergency Economic Powers Act (IEEPA) tariffs, Trump invoked Section 122 to impose 10% tariffs on foreign goods. However, the Supreme Court's decision opened the door for a wave of claims seeking repayment of tariffs levied under the original regime.
Impact on Asos's Financial Performance
Asos reported that these tariffs negatively affected its bottom line in the first half. The company explained: "The market was affected by widespread volatility and, in particular, the introduction of IEEPA tariffs which caused fulfilment disruption early in the half and impacted profit by £7 million in the half-year 2025-26."
To mitigate the impact of increased tariff and duty costs, Asos has taken actions including pricing adjustments, which it says retain its competitive position and support future growth. The firm emphasised that the US remains a key strategic market and one of its most profitable regions, supported by strong profit per order, reinforcing the long-term attractiveness of the market despite near-term volatility.
Additional Cost Pressures and Financial Results
Asos also noted it had taken "proactive action" to offset rising costs due to the Middle East conflict. The company stated: "We continue to monitor developments closely and are continuously reviewing a range of levers to protect profitability whilst ensuring seasonally relevant product arrives to meet customer demand."
In the half-year to March 1, Asos narrowed its pre-tax losses to £137.9 million, down from £241.5 million in losses a year earlier. Sales by gross transaction value (GMV) fell 9% to £1.17 billion, but the company reported "early signs" of improvement. UK GMV sales declined by 5%, yet the group saw an approximate 10% rise in new customers in Britain.
Asos added it is seeing further improvements in sales so far in the third quarter, which helped lift its shares by 4% in midday trading on Thursday.
CEO Comments on Progress
Jose Calamonte, Asos chief executive, said: "The first half of 2026 has seen significant progress and momentum for Asos." He added: "Together, we are taking decisive steps towards re-establishing Asos as a leading online fashion destination."
