Which Companies Will Share $166 Billion in Tariff Refunds With Customers? (May 2026)
On February 20, 2026, the U.S. Supreme Court struck down President Trump's IEEPA tariffs as unconstitutional in Learning Resources, Inc. v. Trump, ruling that the president exceeded his authority under the International Emergency Economic Powers Act. The decision opened the door to an estimated $166 billion in refunds — but here is the catch: the money goes to the companies that paid the tariffs, not to the consumers who ultimately bore the cost through higher prices.
More than 330,000 importers paid tariffs on over 53 million shipments. On April 20, 2026, U.S. Customs and Border Protection launched the CAPE portal to begin processing refund claims. As of late April, more than 75,000 businesses had filed requests. The first electronic refunds are expected around May 11.
So who actually gets the money? And will any of it reach your wallet?
This guide tracks every major company's public stance on tariff refunds, the class action lawsuits fighting for consumer compensation, proposed legislation, and what you can actually do right now.
What Happened: A Quick Timeline
| Date | Event | |---|---| | February 1, 2025 | Trump imposes IEEPA tariffs on imports from multiple countries | | February 20, 2026 | Supreme Court strikes down IEEPA tariffs as unconstitutional (6-3) | | March 5, 2026 | Costco CEO Ron Vachris pledges to pass refunds to members via "lower prices" | | March 9, 2026 | Rep. Cuellar introduces American Consumer Tariff Rebate Act ($1,020 per person) | | March 11, 2026 | Class action filed against Costco in Illinois (Stockov v. Costco) | | March 12, 2026 | Sen. Heinrich introduces Tariff Refunds for Working Families Act ($1,200 + $600/child) | | March 27, 2026 | Second class action filed against Costco in Washington state | | April 20, 2026 | CBP launches CAPE portal; businesses begin filing refund claims | | Late April 2026 | 75,000+ businesses file refund claims; ~19% of declarations rejected | | May 11, 2026 | First ACH refund payments begin processing | | Ongoing | Class action lawsuits filed against Costco, Lululemon, FedEx, UPS, Nintendo, EssilorLuxottica, Temu, Fabletics |
The Core Problem: Why Consumers Are Left Out
When the Supreme Court struck down the tariffs, the refund mechanism was designed to return money to importers of record — the companies that physically paid the tariff bills at the border. Under U.S. trade law, there is no mechanism to trace those payments through supply chains to the individual consumers who paid higher retail prices.
⚠️ The math that matters
Goldman Sachs estimated that U.S. consumers shouldered roughly two-thirds of tariff costs through higher prices. The Budget Lab at Yale found that tariffs accounted for about 86% of the rise in prices for imported household goods through January 2026. Yet under current law, companies have no legal obligation to pass refunds to consumers.
The average household paid an estimated $1,745 in additional costs due to IEEPA tariffs, according to the Joint Economic Committee and Congressional Budget Office. Walmart alone may recover more than $10 billion, Target could receive over $2 billion, and Nike may see $1 billion in refunds, according to Citi Research estimates. Home Depot could receive more than $500 million. Apple is owed between $2.5 billion and $3.3 billion.
These figures do not even include the interest owed by the government on those refunds.
Company-by-Company Tracker: Will They Share Refunds?
| Company | Estimated Refund | Commitment to Consumers | Facing Lawsuit? |
|---|---|---|---|
| Costco | Multi-billions (Citi est.) | "Lower prices and better values" — future benefit, not direct refund | Yes — IL (Mar 11), WA (Mar 27) |
| FedEx | Multi-billions (combined with UPS) | Will refund shippers and consumers who originally bore charges | Yes — FL (Feb) |
| UPS | Multi-billions (combined with FedEx) | Processing refunds for eligible shipments | No public suits yet |
| DHL | Not disclosed | Following CBP procedures for eligible claims and refunds | No |
| Walmart | $10+ billion (Citi est.) | No public commitment | No |
| Target | $2+ billion (Citi est.) | No public commitment | No |
| Home Depot | $500M+ (Citi est.) | "Our customers' advocate for value" | No |
| Best Buy | Not disclosed | No public commitment | No |
| Lowe's | Not disclosed | No public commitment | No |
| Gap | ~$400M (Citi est.) | Took "mitigation" strategies; no commitment on refunds | No |
| Lululemon | ~$240M passed to consumers (alleged) | No public commitment | Yes — alleging "double recovery" |
| Apple | $2.5B–$3.3B (est.) | Plans to invest in innovation | No |
| Nike | ~$1B (Citi est.) | No public commitment | No |
| Dell | Not disclosed | No public commitment | No |
| EssilorLuxottica (Ray-Ban) | Not disclosed | No public commitment | Yes |
| Nintendo | Not disclosed | No public commitment | Yes |
| Fabletics | Not disclosed | No public commitment | Yes |
| Temu | Not disclosed | No public commitment | Yes |
💡 How to read this table
"Commitment to consumers" means what the company has publicly stated about sharing refunds. Most companies have said nothing. Only FedEx, UPS, and DHL have committed to directly refunding consumers who paid tariff surcharges. Costco has pledged future price reductions, not direct payments to past customers. All other major retailers have made no public commitments.
Companies Committed to Sharing Refunds (Detailed)
FedEx
FedEx has been the most explicit. In a statement, the company said it "will issue refunds for IEEPA tariffs paid to shippers and consumers who originally bore those charges once FedEx begins receiving refunds from CBP." FedEx was sued in February 2026 by a Miami customer who alleged the company charged $36 in duties on duty-free German shoes as a customs broker. FedEx's public commitment likely influenced its response.
UPS
UPS CEO Carol Tomé said the combined tariff refunds for FedEx and UPS would likely top $5 billion, and the company would be refunding customers. In a statement, UPS said: "We are processing refunds for eligible shipments where we served as the importer. We will expand our efforts as CBP launches future phases."
DHL
DHL Express stated it "supports customers by following CBP-established procedures for eligible claims and refunds," indicating it would pass refunds through to customers who originally paid.
Costco
Costco's position is the most scrutinized. CEO Ron Vachris said on a March 5 earnings call: "Our commitment will be to find the best way to return this value to our members through lower prices and better values. We will be transparent in how we plan to do this."
The problem: This is a promise of future benefits to future shoppers, not compensation to the specific members who already paid inflated prices. Costco CFO Gary Millerchip acknowledged in a May 2025 earnings call that the company raised prices on certain products from Central and South America "because we felt that was something the member would be able to absorb."
Costco has already lowered prices on some items, including textiles, bedding, and cookware, following the Supreme Court decision. But the lawsuits argue this does not compensate the consumers who bore the original costs.
The Class Action Lawsuits: What's Being Filed
Consumers are not waiting for companies to act voluntarily. Multiple class action lawsuits have been filed under a central legal theory: "double recovery" — the idea that companies passed tariff costs to consumers through higher prices, then sought government refunds for those same costs, effectively getting paid twice.
⚠️ The double recovery theory
Companies that told investors and customers they raised prices "because of tariffs" are the most vulnerable to lawsuits. Their own public statements become evidence that consumers bore the costs, making it harder to argue they should keep both the higher prices and the refunds.
Active Lawsuits by Company
Costco (2 lawsuits)
- Stockov v. Costco (Illinois, March 11, 2026): Filed by Matthew Stockov, a Costco member who purchased electronics, food, household items, and small appliances at inflated prices. Covers customers in Illinois, California, Florida, Michigan, Missouri, New Jersey, New York, Ohio, Washington, and Wisconsin who bought tariff-affected products between Feb. 1, 2025, and Feb. 24, 2026.
- Washington state lawsuit (March 27, 2026): Covers Costco customers in the U.S. who purchased products subject to IEEPA tariffs between the same dates.
Lululemon
- Alleged to have passed $240 million in tariff costs to consumers while simultaneously seeking government reimbursement. The lawsuit characterizes this as "double recovery."
EssilorLuxottica (Ray-Ban)
- Consumers filed claims that the eyewear company raised prices due to tariffs and should refund customers, not keep the recovery.
FedEx
- A Miami customer filed suit alleging FedEx charged duties on duty-free products as a customs broker.
Nintendo
- Consumer lawsuit filed over tariff-inflated pricing on gaming products.
Fabletics
- Allegations of double recovery similar to the Lululemon case.
Temu
- Facing class action over tariff-related pricing.
Will These Lawsuits Succeed?
Law firm Ballard Spahr cautioned that plaintiffs face an uphill battle. Proving fraud or deception is difficult because companies did not know at the time they raised prices that the tariffs might later be struck down. However, the law firm Varnum noted in the National Law Review that "the broader argument — that any company that passed through tariff costs must return corresponding refunds — has potentially sweeping implications."
The outcomes of these early cases (especially Costco and Lululemon) will set precedents for potentially hundreds of similar claims.
Proposed Legislation: Will the Government Act?
Several bills have been introduced in Congress that would provide direct consumer payments:
American Consumer Tariff Rebate Act of 2026 (H.R.)
- Sponsor: Rep. Henry Cuellar (D-TX), introduced March 9, 2026
- Amount: $1,020 per individual, $2,040 per couple, plus $125 per child
- Funding: $231.35 billion allocated (based on CBO/JEC estimates of consumer costs)
- Status: Introduced, not yet passed
Tariff Refunds for Working Families Act (S.)
- Sponsor: Sen. Martin Heinrich (D-NM), introduced March 12, 2026
- Amount: $1,200 for joint filers earning less than $180,000/year, plus $600 per child
- Status: Introduced, not yet passed
Congressional Black Caucus Pressure
- Rep. Steven Horsford (D-NV) sent letters to the CEOs of 10 major companies (Walmart, Home Depot, Target, Best Buy, FedEx, Amazon, Lowe's, Costco, UPS, DHL) demanding:
- Transparency on how tariff costs were passed to consumers
- Timelines for translating refunds into lower prices
- Commitments to not use refunds for stock buybacks or executive compensation
- Public reporting on refund distribution
💡 Reality check
None of these legislative proposals have been passed or formally considered by committee. Commerce Secretary Scott Bessent offered bleak odds for consumers: "I got a feeling the American people won't see it." With the current composition of Congress, direct consumer payments remain unlikely in the near term.
What You Can Actually Do Right Now
1. If You Paid Tariff Surcharges to a Shipping Company
File a claim with FedEx, UPS, or DHL. These three companies have committed to refunding customers who paid IEEPA tariff charges. Check your shipping invoices for line items labeled "tariff," "duty," "IEEPA," or "additional customs charges." Contact the carrier's customer service with your tracking number and invoice.
2. If a Retailer Charged a Visible Tariff Fee
Some retailers itemized tariff costs on receipts or invoices. If you can show a specific tariff line item on a purchase receipt, you have a stronger case for a refund. Keep all documentation.
3. Join a Class Action Lawsuit (If Eligible)
If you purchased products from Costco, Lululemon, EssilorLuxottica, Nintendo, Fabletics, or Temu between February 1, 2025, and February 24, 2026, you may be eligible to join existing class actions. Check the specific state residency requirements for each lawsuit.
4. File a Complaint with Your State Attorney General
Several state attorneys general are tracking tariff refund issues. File a consumer complaint if you believe a company raised prices due to tariffs and is now refusing to pass through refunds.
5. Watch for Price Reductions
Costco and potentially Home Depot may reduce prices on specific items as they receive refunds. Monitor prices on products you buy regularly, especially textiles, bedding, cookware, electronics, and imported goods.
6. Contact Your Congressional Representatives
The legislative proposals need public support to move forward. Contact your representative and senators to express support for the American Consumer Tariff Rebate Act or the Tariff Refunds for Working Families Act.
7. Check for Direct Refund Programs
Some companies are taking matters into their own hands. Cards Against Humanity, the game company, launched a website where anyone who bought its product from any retailer that raised prices due to tariffs can upload a receipt and receive a direct refund via PayPal or Venmo. The company paid tariffs as high as 140% on its China-manufactured game but chose to absorb the cost rather than raise the $29 price — and is now refunding customers of partner retailers who did raise prices.
The Hard Truth About Consumer Recovery
Likelihood of Getting Your Tariff Money Back — Ranked by Method
How to Check if You're Affected
Step 1: Review Your Purchases (Feb 2025 – Feb 2026)
Look at purchases from retailers known to have raised prices due to tariffs. Key categories include:
- Electronics and appliances
- Clothing and footwear (especially from Lululemon, Fabletics)
- Eyewear (Ray-Ban, Oakley via EssilorLuxottica)
- Gaming products (Nintendo)
- Home goods, textiles, and bedding
- Food and grocery items from imported sources
Step 2: Check for Tariff-Specific Charges
Review receipts, invoices, and shipping documents for any line items referencing tariffs, duties, IEEPA, or customs surcharges. These are most common on shipping invoices from FedEx, UPS, and DHL.
Step 3: Document Everything
Keep copies of:
- Purchase receipts and invoices
- Shipping documents with tariff charges
- Any communications from retailers about price increases
- Earnings call transcripts where executives discussed tariff-related pricing
Step 4: Monitor Class Action Developments
Track updates on the active lawsuits against Costco, Lululemon, EssilorLuxottica, Nintendo, Fabletics, and Temu. New lawsuits may be filed against additional companies as the refund process continues.
What Economists Expect
Most economists do not expect widespread price reductions. The challenge is proving a direct link between tariffs and specific consumer prices. Pricing is influenced by multiple factors — supply chain disruptions, inflation, market demand — making it difficult to isolate the tariff component.
Even if class action lawsuits succeed, the process could take years, and any eventual payouts may be small compared to the total cost increases consumers experienced during the tariff period.
The Yale Budget Lab found that tariffs may burden the poorest households more than three times as much as the wealthiest, as a share of income. This makes the consumer recovery question not just an economic issue but an equity one.
Key Takeaways
- $166 billion in tariff refunds is flowing to businesses starting May 2026. Consumers cannot apply directly.
- Only FedEx, UPS, and DHL have committed to directly refunding consumers. Costco has pledged future price cuts. Most other major retailers have made no commitments.
- Class action lawsuits are active against Costco, Lululemon, EssilorLuxottica, Nintendo, Fabletics, and Temu. Outcomes will take years.
- Proposed federal legislation would provide $1,020–$2,040 per household, but has not been passed.
- The average household paid an estimated $1,745 in additional costs due to IEEPA tariffs.
- Your best bet: Claim shipping surcharge refunds from FedEx/UPS/DHL, preserve documentation, and monitor class action developments.
Last updated May 7, 2026. This is a developing story — tariff refund processing, class action outcomes, and legislative proposals may change. Check back for updates.