Consumers who purchased goods from overseas vendors last year may start seeing unexpected credits on their bank accounts as shippers begin to disburse tariff refunds received from the U.S. government. This process marks the final stage of a larger effort to return duties collected under tariffs implemented by the Trump administration.
The Supreme Court's decision in February to strike down sweeping tariffs enacted under the International Emergency Economic Powers Act of 1977, which affected goods from nearly every country, ordered the government to refund collected tariffs. To date, approximately $100 billion in tariffs have been returned to companies that initially paid them, managed through a system established by U.S. Customs and Border Protection.
While the total amount refunded to companies is substantial, individual Americans are unlikely to recoup the full extent of tariffs they paid indirectly. According to the Tax Foundation, the Trump-era tariffs represented an average tax increase of $1,000 per U.S. household in 2025. However, some consumers are now receiving partial reimbursements directly from shipping companies.
Major shippers like FedEx, UPS, and DHL, which acted as customs brokers, are processing these refunds. These refunds are being distributed in phases, correlating with the original payment dates. Shippers have indicated they will continue to pass on reimbursements as they receive them from the government.
FedEx has initiated the process of refunding $800 million in tariffs it received. Customers do not need to apply for these refunds; they can check the FedEx website using tracking numbers to see if they are eligible. UPS, after paying $5 billion in tariffs on behalf of clients, began applying for refunds in April. The company expects customers to receive their reimbursements one to three months after UPS is reimbursed by the Treasury. DHL has also filed claims for most eligible shipments where it served as the importer of record and is returning the refunds it has received, noting that the speed of the process depends on the Customs and Border Protection's claim processing.
For most large retailers, passing on tariff refunds directly to consumers is unlikely. These companies often absorbed tariff costs, altered product selections, or passed on costs indirectly. Amazon, for instance, received $600 million in tariff refunds in the second quarter. While the company stated it is not the importer of record for most goods sold, it will issue automatic refunds in specific instances where direct import charges were passed to customers. Otherwise, Amazon plans to use the refunds to lower prices. Similarly, Best Buy stated it would use any refunds to "deliver value back to our customers," noting its limited role as an importer of record. Costco's CEO indicated the company plans to return some form of tariff reimbursements to consumers, though the specifics depend on the amount and timing of the refunds and ongoing legal developments.
Despite these refund efforts, more than 80 class-action lawsuits have been filed across the country against retailers including Costco, Nike, Amazon, and Walmart. Plaintiffs in these cases are seeking to recover price increases they attribute to the tariffs. However, legal experts suggest these lawsuits face challenges, as plaintiffs must prove that specific price hikes were solely due to tariffs rather than other market factors. None of these lawsuits have yet been certified as class actions.