Shipping companies UPS and FedEx say they plan to return tariff refunds directly to customers following a court ruling that invalidated certain import taxes.
Both companies confirmed this week they are working with U.S. Customs and Border Protection to obtain refunds after a February Supreme Court decision struck down tariffs imposed under the International Emergency Economic Powers Act.
Once the government issues reimbursements, the companies said they will pass the funds on to shippers and consumers who paid the fees.
"We're going to remit it right back to our customers," said UPS CEO Carol Toma, adding the company is seeking to recover about $5 billion in tariffs it collected.
FedEx said its "intent is straightforward" to return refunded money to those who bore the costs.
The process follows the launch of an online claims portal, the Customs Automated Portal Environment, or CAPE, allowing importers to file for refunds. Initial payments could take 60 to 90 days, according to CBP, which estimates more than 330,000 importers paid over $166 billion in tariffs.
The rulings marked a significant setback for the administration's trade policy. In a 6-3 decision, the Supreme Court said the president exceeded his authority by using emergency powers to impose broad tariffs, a power reserved for Congress.
A subsequent trade court decision cleared the way for companies to seek reimbursement.
FedEx, which filed suit earlier this year, has begun submitting claims, while UPS is coordinating with CBP.
The tariffs had a broad impact on consumers, particularly after the suspension of the "de minimis" exemption for imports valued under $800. That change led to added costs on low-value purchases, with some shoppers reporting sharply higher prices.
Not all tariffs are affected. Duties imposed under other laws remain in place, and officials have indicated additional trade measures could be considered.
Consumers may wait months for refunds, but both companies said any recovered funds will be returned rather than retained.
James Morley III ✉
James Morley III is a writer with more than two decades of experience in entertainment, travel, technology, and science and nature.
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