UPS and FedEx say they will return billions in tariff-related charges to customers. But first, they have to get the money back from the U.S. government.
Following a Supreme Court ruling that invalidated a set of Trump-era tariffs, the federal government has begun the process of refunding companies for levies collected under the International Emergency Economic Powers Act, or IEEPA. In total, about $166 billion in tariff collections could be eligible for repayment, according to CNBC.
UPS CEO Carol Tomé said on a recent earnings call that the company had collected roughly $5 billion in tariffs from customers. The company is now working with U.S. Customs and Border Protection to recover those funds.
“We think it’s going to take some time before the Treasury remits money to us,” Tomé said. “But as soon as we get that money, we’re going to remit it right back to our customers.”
FedEx echoed a similar approach, saying it plans to issue refunds to customers “as soon as it begins receiving refunds” from Customs and Border Protection. DHL has also begun filing for refunds, in some cases automatically for shipments where it acted as the importer of record, Reuters reported.
For now, though, the timeline remains uncertain.
Companies seeking refunds must apply through the government’s Consolidated Administration and Processing of Entries portal. Customs and Border Protection is reviewing claims in phases, with the first round limited to more recent entries—those finalized within the past 80 days, CNBC reported.
