FedEx and UPS announce plans to give tariff refunds to customers. Here is how to get your money back
FedEx and UPS have promised to pay back customers who paid more in shipping costs due to President Donald Trump’s tariffs, and with the government’s first refunds expected in the next few weeks, some of those customers can expect returns.
Beginning on or around May 11, the government will begin issuing refunds to companies that made certain tariff payments within 80 days of liquidation – which means payments that were made starting January 30 or payments that are currently pending.
UPS said once it receives payments from Customs and Border Protection, the government agency overseeing tariff refunds, it will issue refunds to customers who used UPS. The company said it has established its own process for that.
FedEx, similarly, said customers can expect refunds as soon as Customs and Border Protection issues the company payments.
Customers hoping to receive refunds for shipments will likely still have to wait several weeks. While the first payments could go out May 11, it will still take at least 60-90 days for Customs and Border Protection to deliver requested refunds to companies.
The Independent has asked FedEx and UPS for comment.
The refunds come more than two months after the U.S. Supreme Court struck down the president’s tariffs brought under the 1977 International Emergency Economic Powers Act. The court said the president did not have the authority to enact tariffs under the law.
For weeks, there has been confusion over how companies can obtain refunds from Customs and Border Protection – especially since the administration is determined to enact tariffs any other way it can.
So far, the government has launched an online portal system, known as CAPE, to allow companies that were the “importer of record” for tariffed goods to request a refund. As of the end of April, the government said it had received more than 75,000 refund requests, of which 3 percent had been successfully processed and were ready for refund.
Refund requests currently being processed are part of “Phase 1.” Other refund requests, such as those for tariffs that were paid last year, will likely be implemented in a separate phase at a later date.
UPS, which estimates it collected approximately $5 billion in tariff revenue, has already submitted requests through the online portal. The company says it will have its own system to dole out payments to customers, though it has not elaborated on that.
FedEx, which has been promising to refund customers since it sued the administration for tariff refunds, also did not elaborate on how it plans to pay back its customers.
“Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges,” FedEx said in a public statement.
