Tariff Update
Hello. I’d like to take a moment to check in about the current Trump administration import tariff situation.
As you likely know, on February 20, 2026, the Supreme Court ruled that Trump’s application of the International Emergency Economic Powers Act (IEEPA) import tariffs was illegal. These tariffs crippled the economy and the companies that rely upon imported goods. Since most flower bulbs are imported to the US, the IEEPA tariffs had a significant impact on our work. They required us to pay 15% of our commercial invoices for goods incoming from Europe and up to 36% of the cost of goods from some of our other sources.
Importers and sellers of these products, begrudgingly, had/have to pass those tariff fees down to their customers, and we expect wholesale buyers had/have to pass them on in some form to their customers, as well, thereby making flowers less affordable and shrinking the marketplace. Tariffs like these mean less business for everyone.
And that’s why we were all singing and dancing in our warehouse on February 20th.
But, our excitement was tempered by the Trump Admin’s next move. When the IEEPA tariffs were forced to stop by the courts, the Trump administration replaced them with a temporary 10% to 15% across-the-board tariff under Section 122 of the Trade Act of 1974. This act will expire after 150 days, on July 24th, 2026, unless it is extended by Congress (doubtful given the almost universal disapproval of these unfair expenses).
We’ll see what happens with the continued application of Trade Act of 1974. Unfortunately, for now, we have to continue to charge the tariff fees, as our spring imports were charged fees during customs processing.
We can seek refunds for the illegal IEEPA tariffs. Our company alone, paid over $100,000 to the Trump Admin in IEEPA tariffs last year. Customers saw these tariffs on the “fee” line on invoices. For most products, we had to charge 7.5% of the price listed in our catalogue in order to pay the the tariff bills.
We’re working with our customs brokers to navigate the complicated portals and platforms the government has set up to manage the requests for refunds and the return payments. The government is not making it easy. For one, the refunds are not automatic. Interested parties must go through a lengthy, multi-step application process. We are navigating that multi-step process now on your behalf. We’ve been informed we are eligible for approximately $99,000 in refunds.
If we are able to receive this refund, we’ll then re-open paid invoice with tariff expenses on them, and issue individual refunds to customers. This is another hidden cost of these tariffs: the hours of labor it takes to add the tariff fees, explain the fees, work to get a refund, and then refund the fees for the various transactions. None of those expenses are being reimbursed, but if we’re able to return funds to customers, we’ll be glad to provide the service. Perhaps a class action lawsuit or further litigation will help businesses like ours re-coup the funds lost to administering the tariffs for the government. One can dream.
We’ll keep you posted as we learn more. We are all hopeful that the tariffs nightmare will be over July 24 and that the fall shipments will be unaffected.
-Linda
