Money

This small business owner is already giving her customers a tariff refund

Small Business Dame Products Gives Consumers Tariff Refunds

As some of the biggest U.S. companies take legal action against the Trump administration to obtain tariff refunds, one small company is already leading the way in giving money back to consumers. Alexandra Fine, the CEO of Dame Products, a sexual health and wellness company, has announced that her company is providing automatic refunds to customers for costs incurred from import tariffs imposed by President Trump last year under the International Emergency Economic Powers Act (IEEPA). The Supreme Court recently ruled that these emergency tariffs were illegal.

“We are giving that money back to the people because if somebody charges you something and it’s unlawful, they should give you your money back,” Fine explained in an interview with CBS News.

Last year, Dame Products implemented a $5 “Trump tariff surcharge” on customer purchases and ended up paying a total of $70,000 in tariffs related to IEEPA. Fine expressed her hope that the federal government and other businesses will follow suit and also provide customers with tariff refunds.

“We have all the information. We can see every customer that had this surcharge tacked on, so we are just clicking a button and sending them their money back,” Fine, who co-founded Dame in 2014, added.

A recent study by the Federal Reserve Bank of New York revealed that consumers and businesses paid nearly 90% of U.S. tariffs in the form of higher costs. The Trump administration disputes these findings, claiming that foreign governments and exporters absorb most tariff costs.

According to the Penn Wharton Budget Model, businesses could be owed up to $165 billion in refunds for IEEPA tariffs paid in 2025 and early 2026.

Fine introduced the tariff surcharge for Dame Products in April 2025 after President Trump announced country-based tariffs on U.S. trade partners, with tariffs on Chinese imports settling at 20%. Currently, Dame faces a 15% tariff on imports from China following a new trade law invoked by President Trump in response to the Supreme Court’s ruling against his use of IEEPA.

Dame Products paid approximately $100,000 in tariffs last year, with $70,000 stemming from IEEPA duties. Fine has already processed some customer refunds and expects to deliver rebates on thousands of additional product orders within a few weeks.

The Supreme Court’s ruling did not address the issue of tariff refunds, leaving businesses wondering how to file for reimbursement.

In the midst of these developments, consumer goods company Cards Against Humanity announced on social media that it will provide partial refunds to customers who “overpaid” for one of their games, contingent on the company receiving its own tariff refund from the government. Major companies like Bausch & Lomb, Dyson, FedEx, and L’Oreal have also sued the federal government for IEEPA tariff refunds.

FedEx stated, “If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges.” Consumers are also taking legal action against retailers to demand refunds for tariff-related costs.

Law firm Morgan & Morgan filed a proposed class action lawsuit against FedEx on behalf of a plaintiff who paid duties for imported tennis shoes, with a similar suit filed against Ray-Ban sunglasses maker EssilorLuxottica. The attorneys at Morgan & Morgan are determined to return every penny improperly charged to American consumers.

In conclusion, the actions of small businesses like Dame Products in providing tariff refunds to consumers set a positive example for larger companies and the federal government to follow suit. The issue of tariff refunds remains a hot topic, with businesses and consumers alike seeking justice for unlawful charges.

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