UPS & FedEx Pursue Tariff Refunds Post High Court Win

United Parcel Service Inc. (UPS) and FedEx Corporation (FDX) initiated tariff refund claim submissions Monday following the Supreme Court’s invalidation of duties imposed under the International Emergency Economic Powers Act. The reimbursement procedure may restore billions to shipping companies but could require up to three months before reaching the customers who initially bore these costs.

Key Takeaways

UPS, FedEx filing refund claims for IEEPA tariffs automatically
Refunds could take three months to reach customers
Only tariffs under emergency powers law are eligible

Market Reaction & Context

UPS stock dropped 1.19% while FedEx slipped 0.01% on Monday as both companies embarked on the intricate reimbursement procedure¹. These developments occurred as U.S. Customs and Border Protection unveiled its Consolidated Administration and Processing of Entries portal, enabling importers to seek refunds from the $166 billion accumulated under the recently invalidated tariffs.

The reimbursements exclusively cover duties gathered under the International Emergency Economic Powers Act, which the Supreme Court deemed unconstitutional in February. Alternative tariff frameworks, including Section 232 and Section 301 assessments, continue unaffected by this decision.

Company Response to Refund Process

UPS announced it will pursue and obtain tariff reimbursements from CBP for customers regarding shipments where the company acted as the importer of record. The Atlanta-headquartered logistics company indicated customers need not contact UPS directly for this procedure.

“We remain focused on keeping shipments moving and helping ensure our customers can fully exercise their rights throughout this complex process,” UPS said in a statement¹. The organization warned that reimbursements might require up to three months for delivery to customers.

FedEx Commitment to Customer Returns

FedEx likewise commenced claim submissions with CBP for tariff reimbursements, highlighting a streamlined method for transferring savings to customers. “Supporting our customers as they navigate regulatory changes remains our top priority,” the Memphis-headquartered carrier stated¹.

The organization pledged to distribute refunds to shippers and consumers who covered the original fees once CBP completes claim processing. FedEx will additionally produce required documentation to support refund applications for customers automatically.

Broader Industry Impact

Deutsche Post AG’s DHL division likewise verified it started submitting tariff refund requests, initiating the procedure automatically for shipments where it served as the importer of record¹. This synchronized response demonstrates the shipping sector’s determination to recover expenses from what are now considered unlawful duties.

President Donald Trump told CNBC’s “Squawk Box” Tuesday that he would “remember” companies that did not request tariff refunds, adding political pressure to the economic considerations facing importers². The reimbursement framework initially addresses approximately 63% of affected import filings, with CBP planning to broaden coverage in later phases.

Customer Impact and Timeline

Although major shipping corporations have pledged to transfer refunds to customers, the schedule remains unclear. CBP anticipates processing approved claims within 60 to 90 days, but companies must first obtain their reimbursements before distributing them to final customers.

This refund initiative represents the most extensive tariff repayment program in U.S. history, involving over 330,000 importers who paid duties on more than 53 million shipments. Nevertheless, not all consumers who experienced elevated prices due to tariffs will directly benefit from this reimbursement system.

Not investment advice. For informational purposes only.