Companies can now apply for tariff refunds , but will shoppers actually see savings?

The Supreme Court ruled in February that the administration of President Donald Trump lacked authority under the 1977 International Emergency Economic Powers Act to impose sweeping global tariffs. The tariffs were projected to generate more than $2 trillion in revenue .

The Trump administration has begun processing billions of dollars in tariff refunds, which could total over $160 billion. Here's whether tariff refunds will impact your wallet.

What are tariff refunds, and why are companies getting them?

Tariff refunds are payments that the federal government is returning to companies that paid certain Trump‑era import tariffs that the Supreme Court later ruled were illegal.

According to the BBC , the repayments could total more than $160 billion, making it one of the largest tariff refund efforts on record.

However, it's the companies, rather than individual shoppers, who are eligible to file claims, according to AARP , and there is no requirement or guarantee that they will pass that money to consumers.

In case you missed it: Companies are getting tariff refunds. Will you see lower prices?

FedEx, UPS and Costco say they plan to pass refunds to customers

Companies such as FedEx , UPS and Costco are planning to pass refunds to customers.

Shipping companies UPS and FedEx say they are taking steps to return some tariff refunds to customers. Both companies say they are submitting refund claims through U.S. Customs and Border Protection's Consolidated Administration and Processing of Entries refund system and plan to refund eligible customers once the funds are released.

"Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges," FedEx stated on its website.

Costco's CEO told investors in March that the warehouse chain plans to return any recovered tariff refunds to members through lower prices and added value. AARP notes the companies have not specified a timeline.

Will other companies lower prices if they get tariff refunds?

It's unlikely. Some experts think typical households will see little or no direct savings.

Shika Jain, a partner and head of consumer for North America at consultancy Simon‑Kucher, said that companies know some shoppers are spending less , but price cuts rarely deliver the boost retailers expect. "When you drop prices, you don't see a lot of volume or traffic in the store, so it just becomes more that you've eroded your top and bottom line," Jain said.

Some consumers are turning to class‑action lawsuits

According to AARP, consumers may need a successful class‑action lawsuit to get refunds. Shoppers have already sued Costco, FedEx and other retailers, arguing the refund money should go back to them, BBC reports.

This article originally appeared on Cincinnati Enquirer: Companies can claim tariff refunds but shoppers face a big hurdle