Businesses Are Getting Tariff Refunds—Why Aren't Consumers Getting Their Cut?

## The Supreme Court struck down Trump's emergency tariffs, unlocking $100 billion in refunds. But the money is going to corporations, not the American families who paid higher prices.

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### The $100 Billion Question

Last year, Sandra Alonso needed a new powered wheelchair to get around her city of Tampa, Florida. She ordered the same model she had before—a chair made in China. When the bill arrived, she paid an extra $3,500. The reason? Tariffs on Chinese goods had reached 145%.

"There's no reason I had to pay double for this chair," Alonso told NPR . "The federal government should give me my money back."

Alonso's frustration is shared by millions of Americans. In February 2026, the Supreme Court ruled that President Trump's emergency tariffs were illegal. The federal government has since refunded more than $100 billion to businesses that paid those fees . But the American consumers who actually bore the cost of those tariffs? They're seeing almost none of it.

**"It's all just a giant transfer from consumers to corporations,"** said Michael Ettlinger, a senior fellow at the Institute on Taxation and Economic Policy. **"You can't really design a worse tax than that"** .

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## Why the Refunds Go to Businesses—Not You

The refund system is structured so that only the "importer of record"—the company that directly paid the tariff at customs—can file a claim. If you bought a pair of sneakers that became more expensive as the company passed along its tariff costs, you have no legal way to get that money back .

The federal government's records identify the company that paid customs, not the shopper who absorbed each dollar of that cost .

**"It's like the retailer stirred the tax into the batter,"** said Terence Lau, dean of Syracuse University's college of law. **"So once it's cooked into the cake you can't just back it out ingredient by ingredient anymore because it's not separated"** .

For businesses, large and small, shipping costs can function as a black box. Robert Shapiro, chair of the international trade group at the law firm Thompson Coburn, told NPR: **"I've had CEOs of big businesses say to me, 'are we paying these tariffs?' And they paid millions of dollars in tariffs. But it got rolled into the price of goods"** .

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## Who's Giving Refunds—and Who Isn't

### The Exception: Shipping Companies

Sandra Alonso is actually one of the lucky ones. She imported her wheelchair through UPS, and the company told her her refund is in the works . UPS, FedEx, and DHL have all pledged to pass along refunds to customers.

The reason is straightforward: shippers explicitly charged customers tariff fees. If the government charged FedEx $100 to import your package, FedEx billed you $100 .

**"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,"** Lau said. **"Otherwise it would be a pretty open-and-shut lawsuit against them for unjust enrichment"** .

### The Retailers: A Different Story

Don't expect the same from retailers. The numbers tell a stark story:

| Company | Refund Amount | What They're Doing |

|---------|---------------|-------------------|

| **Amazon** | ~$640 million | May offer "limited" refunds to some customers  |

| **Target** | $994 million | **Using it to lower prices**—not issuing refunds  |

| **Walmart** | ~$2.9 billion | **No refunds**—will lower prices instead  |

| **Home Depot** | ~$730 million | **Covering gas/diesel costs**  |

| **Nike** | ~$986 million | **Silent** on consumer refunds  |

| **Apple** | ~2% boost to gross margins | **Investing in domestic manufacturing**  |

Target CFO Jim Lee confirmed the company will not issue refunds. Instead, Target will use the nearly $1 billion to "invest in price" to offer better value to customers .

Home Depot's CFO Richard McPhail told investors the company would use its $730 million refund to cover "new costs from pricier gasoline and diesel" .

Walmart executives said they received most of the $2.9 billion they were eligible for and will use those dollars to lower prices rather than provide direct refunds .

### The Lawsuits

Some companies are facing class action lawsuits from consumers demanding refunds:

- **Costco**: Being sued by shoppers demanding refunds .

- **Nintendo**: Asked a court to dismiss a lawsuit, arguing that "plaintiffs received exactly what they paid for: Nintendo products that plaintiffs knowingly and voluntarily purchased at the advertised price" .

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## Why Companies Say They Won't Refund Consumers

Retailers argue that it's nearly impossible to calculate how much each customer paid in tariffs. The import taxes were rarely tracked with individual products and were often spread across the supply chain .

As one expert put it: "It would be an enormous cost to figure out how to get back the money to all a company's customers" .

Some companies, like Target and Walmart, argue that using the refunds to lower prices will benefit consumers more broadly—even if they don't get a direct check .

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## What This Means for You

If you paid higher prices due to tariffs, your chances of getting a direct refund are slim—unless you imported the product directly through a shipping company like UPS or FedEx.

**What you can do:**

1. **Check if you imported anything directly.** If you used UPS, FedEx, or DHL, you may be eligible for a refund .

2. **Watch for class action lawsuits.** Companies like Costco and Nintendo are already facing legal challenges. If a case is certified and a settlement approved, official notices will explain how to participate .

3. **Be skeptical of unsolicited offers.** There is no general federal program for consumer tariff refunds. Be suspicious of any call, text, or email asking for a fee to "release" a refund .

4. **Pay attention to prices.** Retailers like Target and Walmart say they'll use refunds to lower prices. Whether that actually happens remains to be seen .

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## The Bigger Picture: A $100 Billion Transfer

Since the Supreme Court ruling, the Trump administration has certified $100 billion in tariff refunds out of the $166 billion collected . That money is flowing to corporations—not the American consumers who ultimately paid for the tariffs.

Ettlinger put it bluntly:

> **"It's important to keep an eye on what the real sin here is, which is that the government imposed illegal tariffs"** .

For consumers like Sandra Alonso, the frustration is personal. She paid an extra $3,500 for her wheelchair—and she's still waiting for her cut.

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## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, legal, or professional advice. Tariff refunds, government policies, and legal proceedings are subject to change. You should consult with qualified professionals for guidance on specific issues.