A surprise credit after an overseas purchase: the tariff refunds now flowing through shippers
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A surprise credit after an overseas purchase: The tariff refunds now flowing through shippers
By MAE ANDERSON
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year]
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NEW YORK (AP) — If you bought something from an overseas vendor last year, it might be time to check your bank account.
Shippers including FedEx and UPS that acted as customs brokers for imported packages and received tariff refunds from the U.S. government have started to pass on those refunds to the customers that originally paid the tariffs.
The refunds to consumers are the last step in a monthslong process that kicked off in February when the Supreme Court struck down sweeping tariffs implemented by President Donald Trumpin March 2025 under the 1977 International Emergency Economic Powers Act on goods from almost every country. The court ordered the government to return the tariffs it collected.
So far, about $100 billion in tariffs have been refunded to companies who paid them under a system set up by U.S. Customs and Border Protection.
That doesn’t mean Americans will get anywhere close to what they paid in tariffs, since most were paid indirectly. In 2025, the Trump tariffs amounted to an average tax increase of $1,000 per U.S. household, according to the Tax Foundation, a Washington, D.C., group that studies taxes.
But some consumers are getting some of what they paid directly back from shippers including UPS, DHL and FedEx. The refunds are being rolled out in phases based on what date they were paid. Shippers have said they’ll return the refunds on a rolling basis as they receive them.
Tariff refunds from shippers will be directly refunded to credit cards or bank accounts
Most big overseas retailers paid the tariffs themselves and passed them along to retailers with a line item in their invoice that was part of the total bill, or indirectly by raising prices. But some smaller sellers left the tariff to be paid when it reached the U.S. In those cases, shippers paid the bill and charged the recipient of the package.
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FedEx said it has begun the process of issuing $800 million in tariff refunds it received from the government back to the customers that paid them. Customers don’t need to apply to receive their refund, but they can enter tracking numbers for purchased items into a portal on the FedEx website to see whether or not they are due a refund.
UPS said in April it had paid $5 billion in tariffs on behalf of clients and would begin the process of applying to the government for refunds. In the first phase, it applied for $500 million in refunds and said customers should get refunds one to three months after it receives reimbursement from the Treasury.
DHL similarly said that it has filed claims for almost all eligible shipments where it served as the importer of record and is returning the refunds it has received.
“The volume and pace of refunds continue to depend on CBP’s processing of claims,” DHL said in a statement.
Major retailers say they could give back some refunds but mostly will use them to lower prices
Unlike shippers who collected tariffs directly from customers, most big retailers passed on tariffs in indirect ways, changing their product lineups or partly absorbing higher costs, making a consumer refund unlikely.
Amazon executives said last week the company received $600 million in tariff refunds in the second quarter.
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In a call with investors, Amazon CFO Brian Olsavsky said the company isn’t the importer of record on most of the goods it sells and that it has absorbed some tariff costs. But he said the company has “identified a limited set of circumstances where we can trace that we pass specific import charges on to customers.” In those circumstances, he added, “we will proactively contact affected customers and automatically issue refunds to them.”
Otherwise, he said, Amazon will use tariff refunds to lower prices for customers.
That echoes what other large retailers have said. In May, Corie Barry, outgoing CEO of Best Buy, the nation’s largest consumer electronics chain, said the retailer is an importer of record of only about 2% to 3% of what it sells and that the company would use any refund it gets to “deliver value back to our customers.”
And Costco CEO Ron Vachris said the company planned to return “in some form” the tariffs that were passed on to consumers.
“How much we return and when depends on a variety of factors, including how much refund money we receive and when it arrives as well as developments in the lawsuit filed against the company regarding the return process,” he said in a quarterly earnings call in May.
Dozens of class-action lawsuits have been filed
Some shoppers are suing to get the tariffs they paid in the form of higher prices back from companies. More than 80 class-action lawsuits have been filed by customers across the country against retailers including Costco, Nike, Amazon, Walmart and others.
The lawsuits will face difficulty because plaintiffs will have to prove they paid for price increases that were specifically tied to the tariffs, according to Lori Leskin, partner and co-chair of law firm Arnold & Porter’s Consumer Products Practice Group. None of the lawsuits have yet been certified as class action, which would mean they apply to all customers.
“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,” she said. “Most of them are just talking about price increases, and to be able to trace a price increase due to a single factor is going to be really difficult given the multifactorial approach that most companies take.”
Anderson reports for The Associated Press on a wide range of issues that small businesses face. She is based in New York.
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