A surprise credit after an overseas purchase: The tariff refunds now flowing through shippers
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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.