Amazon.com wins appeal over fur tariff evasion claims in U.S. court

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Amazon wins fur tariff appeal

Highlights

2nd U.S. Circuit Court of Appeals rules Amazon not liable for alleged tariff evasion by foreign manufacturers from 2007 to 2024 due to insufficient proof of knowledge.
Court states that below-market prices alone do not demonstrate Amazon's awareness of potential false claims under the False Claims Act.
Amazon, whose 2025 revenue surpasses Walmart's, faces ongoing legal scrutiny as tariff-related litigation expands to include proposed consumer class actions and similar cases against Costco, FedEx, and Nike.

Appeals court ruling on seller liability

As reported by Reuters, the 2nd U.S. Circuit Court of Appeals says there is no proof that Amazon knew, or deliberately ignored, that foreign manufacturers understated shipment values to pay artificially low tariffs. The court also says the record does not show Amazon knew manufacturers evaded U.S. Fish and Wildlife Service inspection fees by omitting required forms and shipping through ports not overseen by that agency.

Mike Henig, owner of Alabama-based Henig Furs, argues that Amazon should have recognized the foreign manufacturers were offering below-market prices because they were fraudulently avoiding import tariffs and fees between 2007 and 2024. He says that conduct violates the False Claims Act by shortchanging the federal government.

The New York-based appeals court finds there could be innocent explanations for lower prices, including economies of scale or lower labor costs. Circuit Judge Jose Cabranes writes for a unanimous three-judge panel that below-market prices alone are not enough to show Amazon was aware of a substantial risk that false claims were being submitted.

Broader litigation and business context

Amazon regularly faces lawsuits from customers and businesses seeking to hold it responsible for the conduct of sellers using its platform. Lawyers for Henig do not immediately respond to requests for comment, and Amazon and its lawyers also do not immediately respond to similar requests.

The case adds to a broader stream of tariff-related litigation involving Amazon. On Friday, consumers file a proposed class action alleging Amazon fails to refund costs passed on through higher prices after tariffs that the U.S. Supreme Court finds were imposed unlawfully by President Donald Trump, and companies including Costco, FedEx and Nike also face similar lawsuits.

Separately, Amazon's 2025 revenue surpasses Walmart's, extending the retailer's scale as legal scrutiny over marketplace practices continues.

Our earlier article on the EU–U.S. trade deal explained how Brussels and Washington moved toward easing transatlantic tariff tensions, including the EU’s planned removal of tariffs on U.S. industrial goods and a U.S. cap of 15% on most European imports. We also noted the deal’s safeguard clauses and why the prospect of lower tariff risk mattered for exporters such as European automakers and industrials.

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