Automatic Tariff Refunds Coming To These CA Residents

Californians who bought something from an overseas vendor last year should check their bank accounts.

Shippers, including FedEx and UPS, that acted as customs brokers for imported packages and received tariff refunds from the U.S. government have begun passing those refunds on to the customers who originally paid the tariffs.

The refunds to consumers are the last step in a months-long process that kicked off in February when the Supreme Court struck down sweeping tariffs implemented by President Donald Trump in 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.

California was among the states that fought Trump's tariffs in court. Governor Gavin Newsom and Attorney General Rob Bonta sued the administration in April 2025, arguing that the International Emergency Economic Powers Act did not give the president authority to impose sweeping tariffs without congressional approval.

How Big Are Refunds?

So far, about $100 billion in tariffs have been refunded to companies that 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 upon arrival in the United States. In those cases, shippers paid the bill and charged the package recipient.

What Are Shippers Doing?

FedEx said it has begun the process of issuing $800 million in tariff refunds it received from the government back to the customers who paid them. Customers don't need to apply for a refund, but they can enter tracking numbers for purchased items into a portal on the FedEx website to see whether they are due a refund.

UPS said it had paid $5 billion in tariffs on behalf of clients as of April and was initiating government refund applications. The company initially requested $500 million in reimbursement, noting that clients can anticipate receiving their refunds within one to three months after Treasury funds are distributed.

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.

"The volume and pace of refunds continue to depend on CBP's processing of claims," DHL said in a statement.

What Are Retailers Doing?

Major retailers mostly plan to use tariff refunds to lower prices rather than issue direct consumer refunds, as most indirectly passed on tariff costs or absorbed them.

Amazon received $600 million in tariff refunds last quarter. CFO Brian Olsavsky stated that while Amazon rarely acts as the importer of record, it will automatically refund customers in limited cases where specific import charges were directly passed on, using remaining refunds to lower prices.

Other large retailers report similar strategies. Best Buy expects to use refunds to offer customer value, while Costco plans to return passed-on tariffs “in some form,” depending on refund timing, amounts, and ongoing litigation.

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Reporting by The Associated Press