BAKERSFIELD, Calif. (KERO) — A new federal program allowing businesses to apply for tariff refunds may not bring immediate relief to some impacted by tariffs, particularly small businesses that rely on third-party distributors.
The Trump Administration recently opened a portal for businesses to seek refunds on tariffs after they were struck down earlier this year. While the move could return billions of dollars to companies nationwide, it remains unclear how much of that money will reach smaller, local operations — or consumers.
Olivia Snider, owner of Snider’s Cyclery, said her family’s fourth-generation bike shop has already felt the impact of tariffs through rising costs and supply challenges.
“We’re kind of at the mercy of our distributors,” Snider said.
The Bakersfield business, which opened in 1904, does not import products directly. Instead, it purchases inventory from distributors who handle overseas orders — meaning the shop itself is not eligible to apply for refunds.
Due to that structure, only the companies that paid the tariffs upfront — such as importers and distributors — can apply for refunds. Any financial relief would need to be passed down through the supply chain.
“It’s not guaranteed that it will trickle down to small businesses, and it’s not guaranteed we will see any refund,” she said.
Tariffs have already driven up prices in the bicycle industry, with Snider previously estimating increases of 5% to 10%. She said some manufacturers have scaled back production or stopped ordering inventory altogether due to rising costs.
“Prices have definitely gone up. Some manufacturers have stopped ordering inventory because it’s too expensive,” she said.
To adapt, Snider said the business has worked with more distributors and taken on additional risk to maintain inventory levels and keep products available for customers.
Even with the new refund portal, relief may take months to materialize, if at all. For now, Snider said her focus remains on maintaining customer relationships despite ongoing uncertainty.
“We’re hoping maybe prices come down, but we haven’t gotten any official word,” she said.
Snider said the shop will continue prioritizing customer service while waiting to see whether any financial benefits from the refund program reach local businesses.
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