FedEx, UPS and DHL have started returning billions in tariff refunds to the customers who actually paid them, the final step in a process that began when the Supreme Court struck down the tariffs.
If you bought something from an overseas vendor last year, it might be time to check your bank account. FedEx, UPS and DHL have begun returning billions of dollars in tariff refunds to the customers who originally paid the duties, and the money is starting to land in consumer accounts.
The refunds are the final step in a monthslong process that began in February, when the Supreme Court struck down sweeping tariffs imposed under the 1977 International Emergency Economic Powers Act and ordered the government to return the money it collected. Customs and Border Protection has now refunded roughly $100 billion to companies that paid the tariffs, and the shippers that fronted duties on behalf of everyday customers are passing those refunds along.
When the tariffs were in effect, carriers and customs brokers routinely paid the duties for importers and individual shoppers to keep packages moving. Those payments were logged with the government, and when the court ordered a return of the funds, the refund pipeline opened up.
Now that the government has paid out the bulk of the refunds, the companies that collected the money are honoring their commitments. FedEx said it has begun the process of issuing $800 million in tariff refunds it received from the government back to the customers that paid them. No application is required, and customers can enter tracking numbers for purchased items into a portal on the FedEx website to see whether they are due a refund.
UPS said it paid $5 billion in tariffs on behalf of clients and is working through the refund process in phases. In the first phase, it applied for $500 million in refunds and told customers to expect their money one to three months after it receives reimbursement from the Treasury.
DHL said it has filed claims for almost all eligible shipments where it served as the importer of record and is returning the refunds it has received. The pace of payments depends on how quickly Customs and Border Protection processes the claims, the company said.
The refunds are being rolled out in phases based on the date the duties were originally paid. That means customers who paid tariffs early in the program are likely to see their refunds first, while later payments are still working through the pipeline.
Anyone who bought goods from overseas last year should keep an eye on their payment accounts and check the portals set up by the carriers. FedEx customers can look up their tracking numbers on the company's refund portal, and UPS has established a similar process for its customers.
Consumers do not need to file paperwork or take any action to receive the money, but they do need to know which shipper handled their package. If a purchase was delivered through a carrier that acted as the customs broker, the refund is likely coming through that company's system.
The refund process is still running, and more money is on the way as additional claims are processed. The administration collected around $166 billion in tariffs before the court ruling, and roughly $129 billion in refund claims have been accepted for processing so far.
For American consumers, the takeaway is simple: the system is returning money that was collected on their behalf. With FedEx, UPS and DHL now in the payout phase, the final checks from the tariff fight are finally making their way home.
FedEx, UPS and DHL have started returning billions in tariff refunds to the customers who actually paid them, the final step in a process that began when the Supreme Court struck down the tariffs.
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