Richard Brown was in for a surprise when he learned that the Supreme Court had struck down many of President Trump’s tariffs. This news left him bewildered. As a small business owner in Ohio, he runs Proof Culture, a sneaker accessory company. He couldn’t help but wonder how he’d get refunds for the tariffs he had already paid.
In his audio diary shared with NPR, Brown’s experience highlights a bigger issue: many U.S. businesses could struggle to recover billions in promised tariff refunds. Experts say that thousands of companies might never see that money back.
After the ruling, officials warned that getting refunds could take years. Companies like Costco and Revlon filed lawsuits to secure theirs. Brown, who operates alone with the help of a friend and his father, found himself without legal or customs assistance. “I don’t want to be a customs broker when I grow up,” he joked.
Proof Culture started by making custom sneakers, eventually expanding into products like shoelaces and storage boxes. Just three years into importing, they estimate that the government owes them around $25,000 in refunds—significant for a small business, amounting to about 10% of their revenue last year.
Brown navigated a complex supply chain and rarely dealt with customs. But to reclaim his tariff money, he had to change that. In March, U.S. Customs announced they would create an online system for refunds, eliminating the need to sue. This new requirement placed the onus on Brown to learn yet another complex system.
Many other small importers like Brown faced similar challenges. A survey conducted by the Federal Reserve showed that over 60% of small businesses were unprepared for the refund portal. Technical errors and long hold times with U.S. Customs frustrated many.
Trade experts from the Cato Institute warned that the government’s manual refund process risked keeping billions that should have been returned. As of late April, over a third of refund claims were rejected due to errors, leaving many businesses to wonder if the effort was worth it.
Brown remains determined, but he often questions the return on the time and effort he’s putting into this refund process. “Every dime matters for a small business,” he reflects. Despite the hurdles, he and his friend are pushing on and preparing to file their claim, but the stress of juggling business and compliance is weighing heavily on him.
In the end, Brown’s story reflects a broader trend: many small businesses are feeling the impact of bureaucracy as they navigate new systems and regulations. It’s a challenging time, but one that showcases the perseverance of entrepreneurs like him.
For more context on tariff and trade implications, visit the Cato Institute.
