Major UK fashion brand demands £7million from US after Donald Trump's tariff 'volatility'

Patrick O'Donnell
Thu, 23 Apr 2026 20:39:25 +0000

A major UK-based fashion brand is looking to recover millions of pounds resulting from President Donald Trump's sweeping tariffs.

Retailer Asos has disclosed plans to recoup £7million in American import duties paid during the first half of its financial year.

The company confirmed it has initiated proceedings to reclaim tariffs levied on goods shipped to the United States in the six months ending March 1.

This move comes after the US Supreme Court ruled in February that President Trump's tariff regime was unlawful, determining that a 1977 statute did not grant him authority to impose import taxes without congressional approval.

The landmark ruling against the International Emergency Economic Powers Act (IEEPA) tariffs has triggered numerous repayment claims from affected businesses.

According to the online retailer, these tariffs dealt a blow to Asos's financial performance during the period.

The company stated: "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 £7million in the half-year 2025-26."

Despite these headwinds, the retailer managed to reduce its pre-tax losses significantly, reporting a deficit of £137.9million compared with £241.5million in the same period last year.

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Gross merchandise value declined by nine per cent to £1.17billion, though the company noted "early signs" of recovery were emerging.

Asos has implemented pricing adjustments to counterbalance the increased tariff and duty expenses whilst maintaining its competitive position to support future expansion.

The company emphasised that America remains a crucial strategic market and one of its most profitable territories, with strong profit per order underpinning the region's long-term appeal despite short-term uncertainty.

The retailer has additionally taken "proactive action" to mitigate rising expenses stemming from the Middle East conflict.

It 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."

Domestically, UK gross merchandise value fell by five per cent, yet the business recorded approximately a 10 per cent increase in new British customers.

Trading momentum has continued into the third quarter, with the company reporting further sales improvements that helped push shares up four per cent during midday trading on Thursday.

Jose Calamonte, Asos chief executive, said: "The first half of 2026 has seen significant progress and momentum for Asos.Together, we are taking decisive steps towards re-establishing Asos as a leading online fashion destination."