FedEx and UPS have committed to reimbursing customers who incurred higher shipping costs due to President Donald Trump's tariffs. With the government set to issue initial refunds in the coming weeks, affected customers can anticipate returns. Starting on or around May 11, the government will begin repaying companies that made specific tariff payments within 80 days of liquidation—covering payments made from January 30 or those currently pending.
How UPS and FedEx Plan to Distribute Refunds
UPS has stated that once it receives payments from Customs and Border Protection (CBP), the agency overseeing tariff refunds, it will promptly issue refunds to its customers. The company has developed its own internal process for this distribution. Similarly, FedEx has indicated that customers can expect refunds as soon as CBP disburses the funds to the company. However, customers hoping for swift reimbursements may still face delays of several weeks. While initial payments could go out on May 11, it will likely take at least 60 to 90 days for CBP to deliver requested refunds to companies.
Background on the Tariff Refund Process
The refunds follow a U.S. Supreme Court ruling that struck down the president's tariffs imposed under the 1977 International Emergency Economic Powers Act. The court determined that the president lacked the authority to enact such tariffs under that law. This decision has led to confusion over how companies can obtain refunds from CBP, especially as the administration seeks alternative methods to impose tariffs. To facilitate refunds, the government launched an online portal called CAPE, allowing companies that were the "importer of record" for tariffed goods to submit refund requests. As of late April, the government reported over 75,000 refund requests, with only 3 percent successfully processed and ready for disbursement.
Phased Implementation of Refunds
Currently, refund requests being processed are part of "Phase 1." Requests for tariffs paid last year will likely be addressed in a separate phase at a later date. UPS, which estimates it collected approximately $5 billion in tariff revenue, has already submitted requests through the online portal. The company plans to use its own system to distribute payments to customers, though details remain undisclosed. FedEx, which has been promising refunds since suing the administration, also declined to elaborate on its repayment mechanism. 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.
