Unlawful Trump Tariffs: Austrian Firms Await Reimbursements

Austrian companies continue to await reimbursements for tariffs deemed unlawful under former U.S. President Donald Trump's administration. Daniel Kröpfl, CEO of Tele Controls, the U.S. subsidiary of Vienna-based Telehase Steuergeräte, described the difficulty small firms faced in keeping up with the constantly changing tariff regulations.

Tele Controls, which produces components for devices such as wastewater pumps and building automation systems, operates as both an exporter and importer. The company was subjected to a 15% tariff on imports from the European Union. Despite the U.S. Supreme Court ruling in February that these tariffs were unlawfully imposed, Tele Controls continued to be charged the additional fees long after the decision.

The process for obtaining refunds has proven complex and bureaucratic. Kröpfl noted that larger corporations with extensive legal teams might manage the process, but for him, it would constitute a full-time job. Tele Controls is currently awaiting a response from its logistics partner, FedEx, regarding the correct procedure for filing a refund request.

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If the law changes almost every day, it is difficult for a small company to stay up to date.

Many Austrian companies with U.S. subsidiaries, acting as 'Importers of Record,' are in a similar situation, waiting for their tariff reimbursements. According to the U.S. Department of the Treasury, around $81 billion in tariffs have been repaid to date, with the majority occurring in May and June. These refunds largely stem from the February court ruling. However, affected companies report that no discernible pattern governs the order in which these reimbursements are processed.

The U.S. federal budget is experiencing increased pressure due to these repayments. The deficit, which had narrowed the previous year partly due to tariff revenues, is now widening again as the government disburses these funds.

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Large companies with many lawyers can perhaps manage it. For me, it would be a full-time job to deal with it.