Consumers who purchased goods from overseas vendors last year might be checking their bank accounts with newfound anticipation. Major shipping companies, including FedEx, UPS, and DHL, are beginning to distribute tariff refunds they received from the U.S. government, effectively passing on credits to the customers who originally paid the tariffs.
Supreme Court Ruling Triggers Refund Process
This wave of consumer refunds is the final stage of a process initiated in February 2025, following a landmark Supreme Court decision. The court struck down sweeping tariffs implemented by President Donald Trump in March 2025 under the 1977 International Emergency Economic Powers Act. These tariffs had been levied on goods imported from nearly every country, and the Supreme Court ordered the government to return the collected duties.
To date, approximately $100 billion in tariffs have been refunded to companies that paid them, facilitated by a system established by U.S. Customs and Border Protection (CBP). While this represents a substantial sum, it’s important to note that individual Americans are unlikely to recoup the full amount they may have indirectly paid in tariffs. The Tax Foundation, a Washington, D.C.-based think tank, estimated that in 2025, the Trump tariffs resulted in an average tax increase of $1,000 per U.S. household. However, some consumers are now seeing direct reimbursements from shippers for tariffs they paid.
Shippers Distribute Refunds on a Rolling Basis
The refunds are being disbursed in phases, with the timing dependent on when the original tariffs were paid. Shippers have indicated that they will process and issue these refunds as they receive the funds from the government.
FedEx Leads the Way with Significant Payout
FedEx has announced that it has commenced the process of returning $800 million in tariff refunds it received. Customers do not need to apply for these refunds; instead, they can utilize a portal on the FedEx website, entering tracking numbers for their purchased items to determine if they are eligible for a refund.
UPS and DHL Also Facilitating Reimbursements
UPS stated in April that it had paid $5 billion in tariffs on behalf of its clients and had begun the process of seeking refunds from the government. In its initial phase, UPS applied for $500 million in refunds, with customers expected to receive their reimbursements within one to three months after UPS receives its funds from the Treasury. DHL has similarly reported filing claims for nearly all eligible shipments where it acted as the importer of record and is now returning the refunds it has secured. A statement from DHL noted, ‘The volume and pace of refunds continue to depend on CBP’s processing of claims.’
Retailers’ Approaches Vary
Unlike shipping companies that collected tariffs directly from consumers, most large retailers passed on the tariff costs indirectly. This often involved adjusting product selections or partially absorbing the increased expenses, making direct consumer refunds less probable from these entities.
Amazon executives disclosed last week that the company received $600 million in tariff refunds during the second quarter. During an investor call, Amazon CFO Brian Olsavsky explained that Amazon is not the importer of record for the majority of goods it sells and has absorbed some tariff costs. However, he added that the company has ‘identified a limited set of circumstances where we can trace that we pass specific import charges on to customers.’ In these identified cases, Amazon will ‘proactively contact affected customers and automatically issue refunds to them.’ For other situations, Amazon plans to use the tariff refunds to lower prices for customers.
This approach mirrors that of other major retailers. In May, Cori Barrie, the outgoing CEO of Best Buy, stated that the company is the importer of record for only about 2% to 3% of its sales and would use any refunds received to ‘deliver value back to our customers.’ Similarly, Costco CEO Ron Vachris indicated that the company intends to return tariffs passed on to consumers ‘in some form.’ He elaborated that the amount and timing of these returns would depend on factors such as the amount of refund money received, its arrival date, and developments in a lawsuit filed against the company concerning the refund process.
Legal Challenges and Consumer Suits
A number of consumers are pursuing legal action to recover tariffs paid in the form of higher prices from various companies. Over 80 class-action lawsuits have been filed nationwide against retailers including Costco, Nike, Amazon, and Walmart. However, proving that a specific price increase was directly attributable to tariffs, rather than other market forces, presents a significant challenge for plaintiffs. Lori Leskin, a partner at Arnold & Porter, noted that ‘It’s going to be very hard for anyone to establish that the price increase they paid was due to tariffs and not some other market force.’ As of now, none of these lawsuits have been certified as class actions.
For consumers who purchased imported goods last year, the current refund distributions from shippers represent a tangible, albeit partial, return of tariff costs. While the legal battles continue and large retailers navigate their own refund strategies, those who dealt directly with shippers may soon see a welcome credit appear in their accounts.
