Tariff refunds for overseas purchases in US now reach buyers through shippers; who is eligible for credit?

Shipping companies like UPS and FedEx are beginning to refund tariffs after the Supreme Court's ruling against sweeping duties imposed by the US government. Customers who paid import duties may receive refunds directly. Details here.

Written By Eshita Gain
Updated13 Aug 2026, 12:18 PM IST
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Tariff refunds for overseas purchases are now reaching buyers through shippers; who are eligible for the credit?
Tariff refunds for overseas purchases are now reaching buyers through shippers; who are eligible for the credit?(AP Photo / Jenny Kale / File )

If you bought something from an overseas vendor in the United States 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 US President Donald Trump 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 that 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 fully offset the impact of the Trump tariffs for most Americans, 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, DC, group that studies taxes.

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However, consumers who paid import duties on overseas purchases may receive refunds from shippers such as UPS, DHL, and FedEx.

The refunds are being processed in phases based on the 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 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 disbursing $800 million in tariff refunds it received from the government to the customers who paid them.

It also clarified that customers are not required to submit an application to receive a refund, but they can enter the tracking numbers for purchased items into a portal on the FedEx website to see whether they are due a refund.

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UPS said in April that it had paid $5 billion in tariffs on behalf of clients and would begin 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 funds.

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 indirectly, such as by 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.

Customers have filed more than 80 class-action lawsuits across the country against retailers, including Costco, Nike, Amazon, Walmart and others.

(With inputs from AP)

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