Tariff Refunds Flow to Companies, Not Directly to Shoppers

After the Supreme Court struck down many of former President Donald Trump’s tariffs, the U.S. government began returning more than $160 billion in duties. Refunds go to the “importer of record”—typically shipping firms and large retailers—not to the consumers who paid higher prices.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

The ruling eliminated the legal basis for the 145 percent tariff on many Chinese goods. Customs regulations require refunds be paid only to the entity that filed the entry and paid the duty, leaving companies to decide whether to pass the benefit on.

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Sandra Alonso of Tampa, Florida, paid an extra $3,500 for a powered wheelchair because of the tariff and expects a refund. UPS told her a refund is pending and may take up to 90 days after the carrier receives the money from Customs. Shipping firms such as FedEx and DHL have pledged to forward refunds when they are the importers of record.

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• Walmart: $2.9 billion in refunds received.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Home Depot: $730 million in refunds; $685 million used to offset cost of goods.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Target: $994 million in pre-tax refunds, boosting Q2 operating income to $2.6 billion.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Amazon: $600 million in refunds; most items are not imported by Amazon, so costs were absorbed.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Costco: one-third of entitled refunds received as of early August; plans to return value via lower prices.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Apple: $2.2 billion in refunds, raising gross margins by two percentage points.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• “We've taken a disciplined approach to investing these funds back into customer experience and price leadership,” — John David Rainey, Walmart.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• “Otherwise, like other large retailers, we'll utilize refunds to continue to invest in low prices for customers,” — Brian Olsavsky, Amazon CFO.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• UPS CEO Carol Tomé said UPS will apply for $500 million in refunds and offer direct refunds when UPS is the importer.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• FedEx pledged to return $800 million in refunds through a searchable website for eligible customers.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Walmart claims refunds will drive “price leadership,” but economics professor William Masters warns cuts may be short-term promotions.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Home Depot says most refunds offset costs, yet it has not disclosed a plan to lower consumer prices directly.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• Costco’s statements about “better values and lower prices” contrast with a class-action suit seeking direct cash refunds.

Here's what companies like Walmart and Amazon say they're doing with their tariff refunds

• “There's no reason I had to pay double for this chair,” — Sandra Alonso

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• “It's all just a giant transfer from consumers to corporations,” — Michael Ettlinger

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• “Now that FedEx and UPS have received a refund of that $100 from the federal government, they are absolutely obligated to return it to the person they collected it from,” — Terence Lau, dean of Syracuse University’s college of law

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• “I've had CEOs of big businesses say to me, 'are we paying these tariffs?'” — Robert Shapiro, chair of the international trade group at Thompson Coburn

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