Consumers who made purchases from overseas vendors last year may soon see unexpected refunds in their bank accounts. According to a report from the Associated Press, shipping companies such as FedEx and UPS, which acted as customs brokers for imported packages, have begun passing along tariff refunds they received from the U.S. government to the customers who originally paid those tariffs.

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The refunds mark the final stage of a process that began in February when the Supreme Court struck down sweeping tariffs imposed by President Donald Trump in March 2025 under the 1977 International Emergency Economic Powers Act. The court ordered the government to return the collected tariffs. So far, about $100 billion in tariffs have been refunded to companies that paid them under a system established by U.S. Customs and Border Protection.

Most Americans will not receive the full amount they paid in tariffs, as the majority were paid indirectly. In 2025, the Trump tariffs resulted in an average tax increase of $1,000 per U.S. household, according to the Tax Foundation, a Washington, D.C., research group. However, some consumers are receiving direct refunds from shippers including UPS, DHL, and FedEx. These refunds are being distributed in phases based on the payment date, with shippers returning funds on a rolling basis as they receive them.

FedEx has started issuing $800 million in tariff refunds it received from the government back to customers. Customers do not need to apply, but they can check their eligibility by entering tracking numbers into a portal on the FedEx website. UPS announced in April that it had paid $5 billion in tariffs on behalf of clients and would begin applying for refunds. In the first phase, it applied for $500 million and said customers should receive refunds one to three months after it gets reimbursement from the Treasury. DHL has also filed claims for nearly all eligible shipments where it served as the importer of record and is returning the refunds it has received. DHL noted that the volume and pace of refunds depend on the processing of claims by Customs and Border Protection.

Major retailers have indicated they may pass along some refunds to customers, but most plan to use the funds to lower prices.

Source: IndexBox Market Intelligence Platform