FedEx and UPS have pledged to reimburse customers who incurred higher shipping costs due to tariffs imposed by President Donald Trump. With the U.S. government set to issue its first refunds in early May, many customers may soon receive their money back.
Government Refund Timeline
Beginning on or around May 11, the government will start issuing refunds to companies that made certain tariff payments within 80 days of liquidation. This includes payments made from January 30 onward or those currently pending. UPS confirmed that once it receives payments from Customs and Border Protection (CBP), it will refund customers who used UPS services. The company has established its own internal process for distributing these refunds.
FedEx similarly stated that customers can expect refunds as soon as CBP issues the payments to the company. However, customers may still face delays of several weeks. While initial payments may go out on May 11, it will likely take 60 to 90 days for CBP to process and deliver requested refunds to companies.
Background and Legal Context
The refunds follow a U.S. Supreme Court ruling that struck down the president's tariffs under the 1977 International Emergency Economic Powers Act. The court determined that the president lacked the authority to impose tariffs under that law. For weeks, confusion has persisted over how companies could obtain refunds from CBP, especially as the administration sought alternative ways to enact tariffs.
The government has launched an online portal system called CAPE, allowing companies that were the "importer of record" for tariffed goods to request refunds. As of late April, the government reported receiving over 75,000 refund requests, but only 3 percent had been successfully processed and were ready for payout.
Phased Implementation
Currently processed refund requests fall under "Phase 1." Other requests, such as those for tariffs paid last year, will likely be addressed in a separate phase at a later date. UPS estimates it collected approximately $5 billion in tariff revenue and has already submitted requests through the online portal. The company plans to use its own system to distribute payments to customers, though details remain scarce.
FedEx, which has been promising refunds since it sued the administration, also has not elaborated on its repayment process. In a public statement, FedEx said, "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."
The Independent has contacted FedEx and UPS for further comment.
