Both shipping giants say they’ll pass along refunds after the Supreme Court ruling.
For millions of Americans who paid more than they should have on imported goods over the past year, two of the country’s largest shipping companies are now promising to make it right.
FedEx and UPS have both confirmed they intend to return tariff refunds directly to customers following a landmark February Supreme Court ruling that struck down the legal foundation for a sweeping set of import duties. The decision found that the 1977 International Emergency Economic Powers Act does not give the president authority to impose tariffs, effectively voiding billions of dollars in charges that had been collected from importers and, ultimately, passed along to everyday consumers.
What the Supreme Court actually decided
The 6-3 ruling determined that President Trump overstepped Congress’ role in setting tax rates when he invoked the IEEPA to impose new import duties on products from nearly every major trading partner, citing the U.S. trade deficit as a national emergency. While the court’s majority opinion did not address the mechanics of repayment, a judge at the U.S. Court of International Trade subsequently ordered U.S. Customs and Border Protection to begin processing refunds for all unlawfully collected IEEPA tariffs.
The scope of what is owed is substantial. According to government figures cited in court filings, roughly 330,000 importers paid a combined total of more than $166 billion in IEEPA tariffs. By early April, more than 56,000 importers had already registered through CBP’s new online refund portal, representing approximately $127 billion in potential reimbursements, including accrued interest.
What FedEx and UPS are pledging
Both companies are positioning themselves as straightforward intermediaries in the refund process, emphasizing that they collected tariff payments on behalf of the government and always intended to pass any recovered funds back to the parties who bore the cost.
UPS confirmed it has processed roughly 16 million IEEPA-related entries and remitted more than $5 billion in tariffs to the U.S. Treasury. The company is now working directly with CBP to submit claims through the refund portal. Officials indicated the process of receiving money from the Treasury will take time, but that customers will be reimbursed as soon as funds are returned to the company.
UPS added that Phase 1 of the refund process covers certain tariff payments made starting Jan. 30, 2026, along with pending payments, and that the company plans to expand its efforts as CBP opens future phases.
FedEx, which filed suit against the federal government in February in pursuit of reimbursement, told reporters it has already begun submitting claims with CBP. The company described its intent as straightforward: refunds received from CBP will be returned to the shippers and consumers who originally bore the charges. A spokesperson called supporting customers through regulatory changes the company’s top priority.
CBP has said most valid refund claims are expected to be processed within 60 to 90 days of approval, though more complicated cases involving fully liquidated entries or importers not named in the original litigation could take considerably longer. The Department of Justice has indicated it may appeal portions of the refund order related to certain categories of importers.
What this means for businesses and consumers
For large logistics companies like FedEx and UPS, the refunds are not expected to significantly affect their financial results, since both firms function primarily as collection agents rather than ultimate payers of the duties. The financial burden fell further down the chain, on importers, retailers and in many cases individual consumers who absorbed higher prices without any direct reference to a tariff surcharge.
Retailers who had tariff costs passed on to them through higher prices or explicit surcharges in purchase agreements may have grounds to pursue recovery from importers, particularly where contracts contain specific language tied to tariff charges. Consumers, by contrast, face a harder path, though a number of class action lawsuits have been filed against companies including Costco, FedEx and UPS on unjust enrichment grounds.
It is also worth noting that the Supreme Court’s ruling does not wipe out all existing tariffs. Steel, aluminum and auto levies imposed under separate statutory authority remain in effect, and the administration has signaled that additional duties may follow under different legal mechanisms.
For now, the refund window is open. Whether companies, retailers and individual shoppers are able to claim what they are owed will depend largely on documentation, timing and how the courts continue to shape the process in the weeks ahead.
SOURCE: Fox Business, CFO. com