Tariff Refund Requests: What Suppliers Need to Know

AGG Corporate and International partners Allison Raley and Mike Burke co-authored an article for Supply Chain 24/7 providing guidance for suppliers on what they need to know about tariff refund requests in the wake of shifting tariff policies.

Navigating tariff refund requests is challenging, and an incorrect response could expose a company to unnecessary liability or damaged business relationships. First, the supplier should understand why the customers are making the request and then review the contract terms outlined with that business. It is important to gather the facts and see if a change in tariff policy is relevant to the business issuing the request. Then, the supplier should review invoices, pricing schedules, and communication to see how tariffs were factored into previous transactions. At that point, the supplier must assess both their legal obligation and consider how saying yes or no will impact the commercial relationship.

“The key takeaways for suppliers are to respond thoughtfully, lean on your contracts, and do not assume that a customer’s request is legally valid simply because it sounds reasonable,” said Allison and Mike. “Tariff refund requests sit at the intersection of trade law, contract law, and commercial strategy — and they deserve the careful attention of all three disciplines.”

To view the full article, please click here.