Costco, Walmart and Target to Receive Millions as Feds Rush Out $166B 'Illegal' Tariff Refunds

Some of America's largest retailers are among the companies expected to recover millions of dollars as the federal government accelerates refunds tied to tariffs that were invalidated after Donald Trump's use of emergency powers was struck down in court. With a major payment phase due to conclude by the end of June, businesses say money has already begun arriving after weeks of delays.

The refunds stem from duties collected under tariffs imposed through the International Emergency Economic Powers Act (IEEPA). Following the court ruling, US Customs and Border Protection (CBP) was directed to establish a system for returning eligible payments, setting in motion one of the largest tariff refund programmes in recent history.

Refund Payments Gather Pace

Companies have begun confirming that long-awaited payments are finally reaching their accounts. Basic Fun, the company behind Tonka Trucks, Care Bears and Lite-Brite, received a $6.5 million wire transfer from the US Treasury on Monday, representing about 95% of the tariff refunds it was owed.

Sara Albrecht, chief executive of the Liberty Justice Center, said the pace of payments increased sharply after weeks of slow progress. 'It seems like someone said this weekend that we have to get that money paid out,' Albrecht told the New York Post, adding that it was 'as if some intern forgot to hit a button.'

She said the organisation heard from dozens of companies over the weekend and on Monday that had recovered all of the duties they had paid under the now-invalid tariffs.

Billions Set to Be Returned

The refund programme extends far beyond a handful of businesses. Around 330,000 companies are eligible to seek repayments through CBP's tariff refund portal. Major importers expected to benefit include Costco, Walmart, Target, Home Depot, General Motors, Ford, FedEx, UPS and DHL.

On 9 June, CBP said it planned to distribute approximately $40 billion in refunds by the end of the month. Law firm Holland & Knight separately estimated that more than $95 billion in claims had already entered the agency's Consolidated Administration and Processing of Entries (CAPE) system.

While CBP expects most approved refunds to be issued within 60 to 90 days, more complex claims may require additional review before payments are released.

Three-Phase Refund Process

CBP is implementing the refund programme in stages as it processes the enormous volume of claims.

Phase 1, which began in April, covers certain unliquidated entries and entries still within 80 days of liquidation. Phase 2, scheduled to begin on 29 June, expands eligibility to include additional duties paid before the IEEPA tariffs were invalidated. A third phase is expected later in July. This stage will account for roughly 6.9% of the estimated $166 billion collected under the tariffs.

The phased rollout is intended to help customs officials process claims more efficiently while allowing businesses with increasingly complex filings to enter the system over time.

Who Qualifies for Refunds?

Not every business can automatically claim money back. Only importers of record and authorised customs brokers are eligible to submit refund requests through the government's claims portal. Companies must also demonstrate that the tariffs they paid fall within the categories covered by the court ruling.

The broader economic impact of the tariffs has also become part of the debate. According to a Liberty Street Economics analysis, American businesses and consumers ultimately bore roughly 90% of the economic burden created by the IEEPA tariffs, leaving many companies to absorb higher import costs while the measures remained in force.

Some businesses have already indicated that at least part of the recovered funds could ultimately benefit consumers. Cards Against Humanity, BJ's Wholesale Club, FedEx and UPS are among the companies that have discussed using tariff recoveries to offset costs for customers through lower prices or reimbursements. Large retailers such as Costco, Walmart and Target are also expected to recover substantial sums because of the scale of their imports.

One of the Largest Refund Programmes in Years

The accelerated payments mark a significant milestone in unwinding one of the Trump administration's most far-reaching tariff policies.

For businesses that challenged the duties, the refunds represent the recovery of billions of dollars that had been tied up while the legal battle played out. For CBP, the task remains one of the largest administrative repayment exercises the agency has undertaken, with hundreds of thousands of claims still moving through the system.

As additional phases begin over the coming weeks, more companies are expected to receive payments, bringing the total value of tariff refunds closer to the estimated $166 billion collected under the IEEPA programme.