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FedEx and UPS said they will refund tariff refunds to customers after a Supreme Court ruling opened the door to potentially billions of dollars in refunds tied to Trump-era import taxes.
The companies said they plan to pass on any recovered funds as the federal government begins processing refund applications for duties collected under the International Emergency Economic Powers Act (IEEPA), a move that could impact a wide range of importers.
UPS CEO Carol Tomé said during the company’s first quarter earnings call that UPS processed 16 million IEEPA-related submissions and remitted more than $5 billion in tariffs to the U.S. Treasury Department.
“We are just a middleman,” Tomé said, adding that once refunds are issued, UPS will send the money “directly back to our customer.”
TRUMP ADMIN BEGINS REFUNDING $166B TO COMPANIES AFTER SUPREME COURT DECISION
A United Parcel Service driver loads packages at the New Orleans Convention Center. (Jim West/UCG/Universal Images Group via Getty Images)
FedEx similarly said it plans to issue refunds to customers as soon as it receives refunds from U.S. Customs and Border Protection (CBP), underscoring that logistics companies primarily act as middlemen in collecting tariffs.
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The developments follow a February Supreme Court ruling that found that the 1977 law used by the Trump administration does not authorize presidents to impose tariffs, effectively invalidating a wide range of tariffs applied to goods from major trading partners.
FedEx trucks are parked at a distribution center in San Diego, California. (Kevin Carter/Getty Images)
The decision could trigger a significant wave of refunds, with roughly $166 billion in fare collections potentially subject to refunds, according to government data cited in lawsuits.
Thousands of businesses have already started filing claims after the federal government launched a new system to process refunds earlier this month, signaling strong demand for reimbursement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 392.05 | +3.47 |
+0.89% |
| UPS | UNITED PARCELSERVICE INC. | 108:00 | +1.37 |
+1.28% |
CBP said it began rolling out a phased reimbursement system on April 20, allowing importers and brokers to submit claims through its online portal. The agency said most valid refunds are expected to be issued within 60 to 90 days of approval, although more complex cases may take longer.
For logistics companies like UPS and FedEx, the refunds are not expected to have a material impact on financial results because the companies primarily collect fares from customers and remit them to the federal government.
Still, the scale of the refunds highlights the broader economic impact of the tariffs, which disrupted global trade flows and weighed on corporate profits across multiple sectors.
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Although the court’s ruling struck down tariffs imposed under the IEEPA, other trade remedies remain in place and officials have indicated that additional rights may still be pursued under alternative legal authorities.
Reuters contributed to this report.
