- The U.S. government refunded $33.4 billion in tariffs to businesses in July, pushing total repayments above $100 billion since the struck down Trump's sweeping emergency tariffs earlier this year.
- The July refunds exceeded the money the government collected from tariffs during the month, with customs duties bringing in $24.8 billion, nearly $9 billion less than the amount returned to businesses.
- Shippers including UPS, DHL, and FedEx have started passing on tariff refunds to customers that originally paid the tariffs.
- FedEx has begun the process of issuing $800 million in tariff refunds it received from the government back to the customers that paid them.
- UPS applied for $500 million in refunds and said customers should get refunds one to three months after it receives reimbursement from the Treasury.
- The refunds stem from the Supreme Court's Feb. 20 ruling against tariffs Trump imposed under the International Emergency Economic Powers Act, or IEEPA.
- The federal tariff refund portal opened in late April after the ruling, allowing businesses to apply for refunds.
- The government refunded nearly $22 billion in May and another $49.1 billion in June before sending out $33.4 billion in July.
The U.S. government refunded $33.4 billion in tariffs in July, pushing total repayments above $100 billion since the Supreme Court's ruling against former President Trump's emergency tariffs. This marks the third consecutive month where refunds exceeded tariff collections, with customs duties bringing in only $24.8 billion in July.128
The refunds stem from a Feb. 20 Supreme Court ruling that deemed the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) improper. Following this, a federal tariff refund portal was established, leading to a rapid increase in repayments: $22 billion in May, $49.1 billion in June, and $33.4 billion in July.
Shippers like FedEx and UPS are passing these refunds to consumers. FedEx has begun issuing $800 million in refunds, while UPS has applied for $500 million in refunds for its clients. Consumers can track their refunds through the shippers' systems.345
However, many retailers, including Amazon, have faced challenges in passing refunds directly to consumers. Amazon reported receiving $600 million in tariff refunds but noted that proving direct price increases due to tariffs is complex. Over 80 class-action lawsuits have been filed against major retailers, complicating the situation further.
The refunds are straining the federal budget, with the Treasury Department reporting a deficit of $1.8 trillion in the first 10 months of fiscal 2026, projected to reach $2.1 trillion by the end of the fiscal year on Sept. 30.
“The refunds stem from the Supreme Court's Feb. 20 ruling against Trump's IEEPA tariffs, with a federal portal opening in late April. FedEx alone is issuing $800 million back to customers, while Amazon received $600 million in Q2 refunds and plans to automatically refund affected customers.”
AP News
