If you bought something from an overseas vendor last year, it might be time to check your bank account. Shipping companies such as FedEx and UPS, which acted as customs brokers for international parcels, have begun forwarding tariff refunds to customers who originally bore those charges.
This development comes after the United States Supreme Court struck down sweeping tariffs implemented by President in March 2025 under the 1977 International Emergency Economic Powers Act on goods from almost every country, news agency AP reported.
After the court directed the US government to return the tariffs it collected, customs brokers started receiving repayments from the authorities and are now passing those amounts on to affected customers.
So far, about $100 billion in tariffs have been refunded to companies who paid them under a system set up by US Customs and Border Protection.
Who will receive these tariff refunds?
These refunds are not expected to reimburse most Americans for the full impact of the , because much of the cost was passed on indirectly through higher prices rather than paid directly by consumers
In 2025, the tariffs imposed by the Trump administration amounted to an average tax increase of $1,000 per US household, according to the Tax Foundation, a Washington, D.C., group that studies taxes.
However, consumers who directly paid import duties on overseas purchases may receive some refunds from shippers such as UPS, DHL and FedEx.
The refunds are being processed in phases based on what date they were paid. Shipping companies have said they will return the refunds on a rolling basis as they receive them from the government.
How will the refunds be credited?
Tariff refunds from shippers will be credited directly to credit cards or bank accounts, depending on the payment method used for the shipment.
FedEx said it has already begun the process of disbursing $800 million in tariff refunds it received from the government back to the customers that paid them.
It also clarified that customers are not required to submit an application to receive the refund but they can enter the tracking numbers for purchased items into a portal on the 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 US government for refunds. In the first phase, it applied for $500 million in refunds and said customers should receive their refunds within one to three months after it receives the amount.
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.
Major retailers, however, passed on tariffs in indirect ways such as changing their product lineups or partly absorbing higher costs, making a consumer refund unlikely so they will mostly use it for cost-cutting, according to the AP report.
Dozens of class-action lawsuits have been filed
Some shoppers have also initiated legal action 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.
(With inputs from AP)
