Small businesses across America are discovering they're ineligible for court-ordered tariff refunds despite bearing the cost of illegal Trump-era levies. More than 35 million small businesses face exclusion from the refund system because US Customs and Border Protection only allows direct importers to register claims. Business owners like Tom England of Dancing Bear Toys express frustration that the system won't benefit those who indirectly paid tariffs through higher supplier costs.

The Supreme Court threw out Trump's tariff regime earlier this year, ordering CBP to create a refund system. However, the process favors large corporations that directly import goods. Small business owners report suppliers increased wholesale prices by up to 40 percent to cover tariff costs. Even for qualified importers, the refund system faces challenges with fewer than one-fifth having registered for the required electronic payment system.

Business owners expect higher prices to persist regardless of potential refunds. Tom England guarantees suppliers won't lower prices even if they recover tariff money. The refund system's complexity leaves small businesses bearing the economic burden of trade policies they had no direct role in implementing. Maria Peck of Tiara Day noted that importers now charge a "fuel surcharge" to cover increased oil costs following Trump's policies, adding another financial strain.