Tariff refunds are rolling out

Sarah Wells checked her company bank account last week and got a welcome surprise.

“About half of what I claimed for refund was in my bank account,” said the owner of Sarah Wells Bags, which makes products for new moms. “Like, the cash was not even pending. It was already deposited back into my bank account.”

There it was: $10,000 in tariff refunds, half of what the government owes her.

“I was really hesitant to believe it would be real until the check was in the bank, so to speak. And it was exciting to see it,” she said.

As of about a week ago, U.S. Customs and Border Protection had approved more than $35 billion of the $166 billion the Trump administration owes to companies for tariffs the Supreme Court ruled illegal.

The deposits have started arriving earlier than businesses were expecting. Still, many business owners are in disbelief that the refunds are real, even after seeing the cash in their accounts.

“I think it’s OK to do both celebration on these refunds, but still also be mindful that we’re still in a state of real upheaval,” said Wells, who’s earmarked the money to pay for other tariffs still in place.

Brian Bourke, chief commercial officer at the customs brokerage Seko Logistics, said overall, getting tariff money back has been drama-free. Though there are still questions about how tariffs will ultimately play out, his clients are feeling confident enough to order goods regularly again.

“There’s more of a smoothing out of the import volumes,” said Bourke. “And with certainty, I think companies can also price better as they sell and manufacture in the United States.”

Glory International Trade, a distributor that imports small appliances like blenders and fans from China and Vietnam, has lowered its prices since getting a $20,000 tariff refund. The company is still waiting on another $40,000.

“I am a little bit skeptical about the remaining amount just because I’m not sure there will be any money left over for refunds,” said vice president of operations Zhang Liuhe.

Getting any money back is good. But it’s almost as if tariffs have taken a backseat now. Liuhe said not long after the war started, trucking companies increased prices.

“They started charging fuel surcharges. So I think that’s like an extra $200 for every shipment,” he said.

Liuhe is nervous about the economy. He’s worried about his personal budget and is cutting back on spending. “Less family vacations or trips if any at all, less going out to eat,” he said.

He figures if he’s spending less, the people who buy his appliances might be spending less, too.

More on the tariff refund process

• From May 14: Tariff refunds are available. This coffee roaster can’t claim them.

• From May 8: As tariff refunds are issued, businesses must decide whether they'll share with their customers

• From May 4: Consumers might see tariff refunds — in 2036

• From April 23: Here’s how tariff refunds are going so far

• From April 15: How small businesses are preparing for tariff refunds