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In a significant development following a court decision in February, major shipping companies FedEx and UPS have announced plans to refund customers after a ruling overturned the Trump administration’s application of the International Emergency Economic Powers Act (IEEPA) to impose tariffs.
UPS confirmed this initiative to Nexstar on Wednesday, stating that the company is collaborating with U.S. Customs and Border Protection (CBP) to facilitate the refund process. Customers can now submit refund requests through an online portal managed by the CBP.
The initial phase of refunds will address specific tariff payments made from January 30, 2026, onwards, including those tariffs currently pending, as indicated by UPS.
Waiting on the CBP
Natasha Amadi, a spokesperson for UPS, shared in an email, “UPS is actively processing refunds for eligible shipments for which we acted as the importer. We are prepared to expand our operations in line with future phases rolled out by CBP. Our priority is to assist our customers throughout this refund process.”
The CBP has indicated that the issuance of refunds may take between 60 to 90 days. According to a court document, approximately 330,000 importers have collectively paid over $166 billion in tariffs.
During a post-earnings call, UPS CEO Carol Tome said that the postal company had collected roughly $5 billion in tariffs from customers, The Journal Record reports.
“We are working with the Customs Border Protection to apply for those refunds,” Tome said. “We think it’s going to take some time before the Treasury remits money to us, but as soon as we get that money, we’re going to remit it right back to our customers.”
FedEx, which sued the government in February to recoup import taxes, told Nexstar it has already started to file claims with the CBP.
“Supporting our customers as they navigate regulatory changes remains our top priority,” a spokesperson said in an email. “Our intent is straightforward: when refunds are issued to FedEx, we will isse refunds to the shippers and consumers who originally bore those charges.”
Many Americans were forced to pay import duties on products from overseas after President Trump signed an executive order in July, 2025 that suspended the “de minimis” tax exemption rule for products worth $800 or less.
One Florida consumer who paid $8 for shipping and even more for a FedEx tariff bill told The Associated Press his fragrance oil from Toronto “wasn’t worth the $10 tariff for a $27 purchase.”
Court decision invalidates Trump tariffs
In a 6-3 decision, the Supreme Court found that Trump usurped Congress’ tax-setting role last April when he set new import tax rates on products from almost every other country, citing the U.S. trade deficit as a national emergency that warranted his invoking of the 1977 International Emergency Economic Powers Act (IEEPA).
Although the court majority did not address refunds in its ruling, a judge at the U.S. Court of International Trade determined last month that companies subjected to IEEPA tariffs were entitled to money back.
February’s Supreme Court decision marked a significant blow to Trump’s economic agenda. But many other tariffs remain in effect — including punishing sectoral levies that Trump imposed using another law (Section 232 of the 1962 Trade Expansion Act).
The administration has also signaled that more new duties are on the way.
Trump has publicly attacked companies who have warned of price hikes spanning from tariffs — and at times used the threat of new import taxes to strike deals. Last week, the president also said he’ll “remember” those that do not seek refunds from his IEEPA tariffs.
“I think it’s brilliant if they don’t do that,” Trump told CNBC of companies that hadn’t yet sought reimbursements. “If they don’t do that, they got to know me very well.”
The Associated Press contributed to this report.