Tariff refunds flow to importers while many retailers keep the money

A recent Supreme Court decision invalidated numerous tariffs imposed during the Trump administration, prompting the federal government to return more than $160 billion in collected duties. The refunds are being sent to importers, typically U.S. businesses, rather than to end consumers who bore the higher prices. Shipping carriers—including UPS, FedEx and DHL—have announced plans to pass the refunds they receive from Customs back to the customers they charged for tariff fees, though the process may take up to 90 days.

Retailers, however, have largely refrained from offering direct refunds; Home Depot said it would apply its $730 million refund to offset higher fuel costs, while Walmart intends to use its $2.9 billion in refunds to lower prices generally. Companies such as Costco and Nintendo are confronting class-action lawsuits from shoppers seeking direct reimbursements. Experts note that because tariffs were often absorbed throughout the supply chain, isolating the exact amount passed to consumers is challenging.