Online fashion giant Asos is pursuing the recovery of £7 million in US tariffs, which it paid during the first half of its financial year. The company confirmed it has initiated proceedings to reclaim these import duties, levied on products shipped to the United States in the six months leading up to March 1.
Supreme Court Ruling Paves Way for Repayment
This move follows a significant US Supreme Court ruling in February. The court overturned an import tax policy implemented by Donald Trump, determining that a 1977 law did not grant him the authority to impose such tariffs without congressional approval.
Just four days after the Supreme Court invalidated his extensive International Emergency Economic Powers Act (IEEPA) tariffs, Mr Trump invoked Section 122 to introduce new 10% tariffs on foreign goods. Nevertheless, the Supreme Court's initial decision has paved the way for numerous businesses to seek repayment of tariffs imposed under the original, now-overturned regime.
Impact on Financial Performance
Asos stated that these tariffs had a detrimental effect on its financial performance during the first half of the year. The company said: "The market was affected by wide spread 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."
"Actions have been taken to balance profitability impacts following the increased tariff and duty costs, including pricing adjustments which retain our competitive position to facilitate future growth. The US remains a key strategic market for the group and continues to be one of our most profitable regions. This is supported by a strong profit per order, reinforcing the long‑term attractiveness of the market despite near‑term volatility."
Middle East Conflict and Other Measures
The firm added that it had also taken "proactive action" to offset rising costs due to the Middle East conflict. "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," it said.
Financial Results and Outlook
The group narrowed pre-tax losses to £137.9 million in the half-year to March 1, down from £241.5 million losses a year ago. Sales by gross transaction value (GMV) dropped 9% to £1.17 billion, but it said there were "early signs" of an improvement.
UK GMV sales fell by 5%, but the group said it saw around a 10% rise in new customers in Britain. It added it was seeing further improvements in sales so far across its third quarter, helping shares lift 4% in midday trading on Thursday.
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."
