ShipStation used blogs, e-book to assist shipping partners with information.
More than 330,000 importers could soon claim a share of roughly $166 billion in tariff refunds after a February ruling found IEEPA tariffs exceeded presidential authority. Sounds great. But for businesses and the communications teams supporting them, the refunds could complicate things a bit.
“The refund portal going live matters, but it doesn’t mean the tariff era is over,” said Josh Steinitz, chief strategy officer at ShipStation.
What comes next will be more about consumer perception, he said. Comms teams must address the topic with transparency and simple explanations to keep trust and credibility strong.
Customers paid. But not in a way that’s easy to return.
At the center of the issue is a basic disconnect right now: consumers paid higher prices during the tariff period, but they weren’t the ones who technically paid the tariffs.
Tariffs are applied at the point of import. From there, the cost moves outward through manufacturers, distributors and retailers before reaching the end customer.
“The consumer won’t understand that there are four different levels in here,” said Mike Timmons, former SVP of Horsepower Automotive Group and consultant and founder at AlloyTek.
By the time the cost reaches consumers, it’s baked into the final price, not itemized or traceable, he said.
“They’re automatically going to think, ‘I paid $5 more, so I should get my $5 back,’” Timmons said.
Legally, only the companies that paid the tariffs are eligible for refunds. Even then, the process is slow and there are still some unknowns, Steinitz said. The current system covers about 63% of eligible entries, and payouts could take 60 to 90 days after approval, he said.
“Many businesses are holding refund money in reserve because it’s possible we could see replacement tariffs through other legal channels,” Steinitz said. “So the uncertainty hasn’t really lifted.”
This makes it difficult to explain what consumers should expect, Timmons said.
“There’s no way to track everything,” he said. “The refund system operates at the importer level. Customer expectations operate at the purchase level. The two don’t align.”
Despite the unknowns about refunds, ShipStation said it launched a blog explaining tariffs, from what they are and how they’re imposed, to who is most impacted. This can help their customers, mostly e-commerce clients, break it down for consumers.
The company also created a more in-depth e-book that tackles complex information about tariffs, sharing resources and links to more information.
Meanwhile, FedEx said it’s setting expectations with customers. The company told PR Daily that the Supreme Court decision “does not negate all tariffs,” and that other duties will still apply. As a result, “in some instances, customers/recipients may see a partial refund of duties paid.”
Their language acknowledges how customers are affected. They’re clear that not every consumer will receive a refund.
Companies that can focus on what customers are actually experiencing and feeling, while being realistic, will be better off, Timmons said.
If you’re acknowledging refunds, lead with what the customer gets or how you’re trying to offset price increases, whether that’s a discount, rebate or price adjustment.
“I think you (share information) at the same time you’ve got a solution,” Timmons said. “If you announce it before a solution, then the people are just going to ask for their money back or not understand.”
Keep it to a clear explanation and a clear action.
“Just offer a 10% or 15% off sale, call it a tariff sale or something that shows good faith,” Timmons said.
This gives customers something tangible without forcing them to understand the underlying math, he said.
If that isn’t possible, acknowledge the issue, explain the constraints and redirect to what you can offer, he said. In these situations, actions speak volumes.
Fairness and transparency during complexity
The issue also raises concerns about perceived fairness.
Consumers may not understand import structures or legal eligibility. But they understand when they paid more and expect some acknowledgment of that, Timmons said.
“If consumers feel like they’ve been screwed over, more people will fight it than not,” he said. “Those voices will be the loudest. You’re going to have to be transparent (about the situation) without confusing the customer.”
This is the sentiment comms teams and businesses really need to manage, he said.
Companies that can navigate this well won’t try to overexplain every part of the process. They’ll show customers, quickly and clearly, how they’re addressing the issue, whether that’s through a Q&A session, a FAQ page or a company blog, Steinitz said.
“Transparency is the right move,” he said. “Some companies are already committing to passing refunds back to consumers while others are lowering prices. Those are smart, strategic calls. Even an honest explanation of the situation goes a long way toward maintaining the trust they’ve built. Customers can handle some complexity. What they can’t handle is feeling left in the dark.”
Courtney Blackann is a communications reporter. Connect with her on LinkedIn or email her at courtneyb@ragan.com.
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