Overview
- Panic confirmed Thursday that it has received refunds from the U.S. government and is reimbursing the 19% tariff surcharge to customers who paid during the window when the fee was charged.
- The refunds stem from a Supreme Court decision that found President Donald Trump's tariffs were not authorized under the International Emergency Economic Powers Act, prompting the government to issue repayments to companies that applied.
- Panic said it initially absorbed some tariff costs but then added a clearly labeled tariff line at checkout because its low Playdate margins made the tax unsustainable.
- Company co-founder Cabel Sasser said filing for the government refund and building a system to process customer reimbursements required substantial paperwork and backend work that hit small firms harder than large ones.
- Responses across the industry vary: shipping firms and some retailers have refunded customers, while larger companies such as Nintendo reported large refunds in filings and now face lawsuits over whether they must return the money to buyers.