Asos looks to reclaim £7 million in US tariffs

Fast fashion firm Asos has revealed it is seeking to recoup £7 million in US tariffs paid in its first half.

The group said it had begun the process of looking to reclaim the US tariffs it was forced to pay to ship products to America in the six months to March 1.

It follows the US Supreme Court’s decision in February to overturn US President Donald Trump’s import tax policy, which found a 1977 law did not give him the power to impose tariffs without the approval of the US Congress.

Four days after the Supreme Court struck down his sweeping International Emergency Economic Powers Act (IEEPA) tariffs, Mr Trump invoked Section 122 to slap 10% tariffs on foreign goods.

But the Supreme Court decision fired the starting gun for a wave of claims for repayment of tariffs under the original regime.

Asos said the tariffs had knocked its bottom line in the first half.

It 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.”

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.

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.”