Refunds for Tariffs Coming To These IL Residents
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Some Illinois customers could reclaim tariffs paid on overseas purchases in 2025 from FedEx, UPS, and DHL. This news would delight them. Illinois residents who bought something from an overseas vendor last year should check their bank accounts.
Shippers, including FedEx and UPS, acted as customs brokers for imported packages. They received tariff refunds from the U.S. government. Now the refunds go to customers who originally paid the tariffs.
These refunds to consumers are the last step in a months-long process. The mandated refund occurred after the Supreme Court struck down 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.
Are the Tariffs Refunds Big?
So far, U.S. Customs and Border Protection has refunded about $100 billion in tariffs to the companies that paid them. Customs and Border Protection. Not that IL residents will see that. Consumers are getting some of what they paid directly back from shippers, including UPS, DHL, and FedEx. Refunds are issued in phases according to the date they were paid. Shippers have said they’ll return the refunds on a rolling basis as they receive them. Shippers will refund tariff amounts directly to credit cards or bank accounts.
Many International retailers paid the tariffs themselves and passed them along to retailers with a line item in their invoice or indirectly by raising prices. Smaller sellers left the tariff to be paid when it reached the United States. In those cases, shippers paid the bill and charged the recipient of the package.
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. For example, Amazon received $600 million in tariff refunds last quarter. Amazon will automatically refund customers in limited cases where it directly passes on charges, using the rest 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.