Following the Supreme Court’s decision to invalidate duties imposed under the International Emergency Economic Powers Act, UPS Inc. (UPS) and FedEx Corp. (FDX) initiated tariff refund claim filings on Monday. The refund mechanism has the potential to restore billions to shipping companies, though customers who initially bore these costs may wait as long as three months for reimbursement.
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
Trading activity saw UPS shares drop 1.19% while FedEx experienced a minimal 0.01% decline on Monday as both companies initiated the intricate refund procedure1. These developments coincided with U.S. Customs and Border Protection’s introduction of its Consolidated Administration and Processing of Entries portal, enabling importers to pursue refunds from the $166 billion accumulated under the subsequently invalidated tariffs.
Refund eligibility extends exclusively to duties gathered under the International Emergency Economic Powers Act, which received a constitutional challenge ruling from the Supreme Court in February. Alternative tariff frameworks, encompassing Section 232 and Section 301 assessments, continue operating without disruption from the court’s decision.
Company Response to Refund Process
UPS announced its intention to pursue and secure tariff refunds from CBP for customers’ benefit regarding shipments where the company functioned as the designated importer of record. The Atlanta-headquartered logistics provider emphasized that customers need not initiate direct communication with UPS regarding 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 company warned that refund distribution to customers might require up to three months for completion.
FedEx Commitment to Customer Returns
FedEx launched similar claim submissions with CBP for tariff reimbursements, highlighting a direct methodology for transferring cost savings to customers. “Supporting our customers as they navigate regulatory changes remains our top priority,” the Memphis-based carrier said1.
The carrier pledged to distribute refunds to shippers and consumers who shouldered the initial expenses following CBP’s claim processing. FedEx will automatically produce required documentation supporting refund applications for customers’ benefit.
Broader Industry Impact
Deutsche Post AG’s DHL division confirmed its participation in tariff refund filing procedures, implementing the process automatically for shipments requiring its services as importer of record1. This synchronized industry response demonstrates shipping companies’ determination to recover expenses from duties now classified as illegally imposed.
President Donald Trump informed CNBC’s “Squawk Box” Tuesday that he would “remember” companies that declined to pursue tariff refunds, introducing political considerations alongside economic factors influencing importer decisions2. The refund framework initially addresses approximately 63% of impacted import submissions, with CBP planning expanded coverage through future implementation phases.
Customer Impact and Timeline
Despite major shipping companies’ commitments to transfer refunds to customers, timing expectations remain fluid. CBP anticipates processing approved claims within 60 to 90 days, though companies must first secure their reimbursements before customer distribution becomes possible.
This refund initiative constitutes the most extensive tariff repayment program in U.S. historical records, involving over 330,000 importers who remitted duties across more than 53 million shipments. Nevertheless, not all consumers who experienced elevated pricing due to tariffs will receive direct benefits through this refund mechanism.
Not investment advice. For informational purposes only.
References
1Laya Neelakandan (April 21, 2026). “UPS and FedEx have begun filing for some tariff refunds”. CNBC. Retrieved April 21, 2026.
2Colleen Cabili (April 21, 2026). “FedEx and UPS are filing tariff refund claims for their shipping customers”. Quartz. Retrieved April 21, 2026.
3“Businesses can claim refunds for Trump tariffs ruled unconstitutional starting Monday” (April 19, 2026). KCRA. Retrieved April 21, 2026.
4Archie Mitchell (April 20, 2026). “Trump tariff refunds begin but consumers likely to miss out”. BBC. Retrieved April 21, 2026.
5Rebecca Schneid (April 20, 2026). “Trump Administration Begins Refunding Tariffs. What You Need to Know”. TIME. Retrieved April 21, 2026.