Small Business Owners Express Skepticism Over Federal Tariff Refund Process

ASHEVILLE, N.C. (WLOS) -- Small business owners across the mountains say they’re cautiously optimistic after learning they can now apply for tariff refunds from the federal government, though many aren’t expecting quick payouts.

Benjamin Colvin, founder and CEO of Devil’s Foot Beverage Co., said tariffs have significantly increased his business's costs, as it imports aluminum cans and lids from China. “Eight to 9 cents a can,” Colvin said of his pre-tariff costs. “But now, like 11, 12 cents a can.”

Colvin said the company has paid tens of thousands of dollars in related fees. While he welcomed news that U.S. Customs and Border Protection has opened a refund portal, he remains skeptical. “It’s great news. Are we holding our breath, thinking it’s gonna happen? I don’t know,” Colvin said.

Because his company purchases materials through middle vendors, Colvin said any refund would have to be passed along. “The way I’m going to be able to recoup anything is through larger middle vendors we purchased cans and lids from,” he said.

Other small business owners in Asheville, though, have paid China tariffs directly and are applying for refunds. “We were charged tariffs since February of last year,” said Erik Fabian, the founder of DoughBed. Fabian said his company has paid more than $170,000 in tariffs for his sourdough home-baker products manufactured in China.

“I’m still skeptical whether we will see this or how much. I feel things change every day,” Fabian said. Fabian said he has already opened a refund account but described the process as cumbersome.

Brian Pittillo of Southern Alarm and Security said his company has paid about $50,000 in tariff-related surcharges on equipment such as cameras. “Just because we’ve spent so much of our own money — if that means we have to sit down with pencil and paper and calculators to get it worked out so we can recoup, we will,” Pittillo said.

Pittillo said the company plans to find a way to get refunds, even though many imported products had vendors charging tariff surcharges rather than direct tariff fees.

Officials say the federal government expects to process refunds in phases, prioritizing companies with more recent tariff payments. Fabian advised that businesses applying for refunds should make sure their banking information is correct when they open an account to ensure any refunds are transferred back into their bank accounts.

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