FedEx and UPS said they will return tariff refunds to customers after a Supreme Court ruling opened the door to potentially billions of dollars in reimbursements tied to Trump-era import taxes.
The companies said they plan to pass along any recovered funds as the federal government begins processing refund claims for duties collected under the International Emergency Economic Powers Act (IEEPA), a move that could affect a broad swath of importers.
UPS CEO Carol Tomé said on the company’s first-quarter earnings call that UPS processed 16 million IEEPA-related entries and remitted more than $5 billion in tariffs to the U.S. Treasury.
“We are just a pass-through,” Tomé said, adding that once refunds are issued, UPS will send the money “right back to our customer.”
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FedEx similarly said it intends to return funds to customers as soon as it receives refunds from U.S. Customs and Border Protection (CBP), reinforcing that logistics firms act primarily as intermediaries in tariff collection.
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The developments follow a February Supreme Court ruling that found the 1977 law used by the Trump administration does not authorize presidents to impose tariffs, effectively invalidating a broad set of import duties applied to goods from major trading partners.
The decision could trigger a significant wave of repayments, with roughly $166 billion in tariff collections potentially subject to refunds, according to government data cited in court filings.
Thousands of companies have already moved to file 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. | 388.59 | -1.62 | -0.42% |
| UPS | UNITED PARCEL SERVICE INC. | 106.61 | +2.67 | +2.57% |
CBP said it began rolling out a phased refund 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 after approval, though more complex cases could take longer.
For logistics companies like UPS and FedEx, the refunds are not expected to materially impact financial results because the firms primarily collect tariffs 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 earnings across multiple industries.
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While the court ruling struck down tariffs imposed under IEEPA, other trade measures remain in place, and officials have signaled that additional duties could still be pursued under alternative legal authorities.
FOX Business reached out to FedEx and UPS for further comment.
Reuters contributed to this report.
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