UPS and FedEx begin refunding tariff payments to customers after Supreme Court ruling

After the U.S. Supreme Court struck down sweeping tariffs imposed by President Donald Trump in March 2025, logistics giants UPS, FedEx, and DHL have begun returning eligible tariff refunds directly to customers who originally paid them. The refunds stem from a February Supreme Court ruling that voided the tariffs under the 1977 International Emergency Economic Powers Act, ordering the government to reimburse companies that had paid the levies. So far, about $100 billion in tariffs have been refunded to businesses, though most consumers are unlikely to recover much since retailers typically passed tariff costs indirectly to shoppers. The Supreme Court’s decision triggered a monthslong process of reimbursement through U.S. Customs and Border Protection, with shippers acting as intermediaries for many refunds. FedEx has initiated the process of issuing $800 million in tariff refunds it received from the government back to customers, with refunds automatically processed for eligible shipments. Customers can check their status by entering tracking numbers into a portal on the FedEx website. UPS, which paid $5 billion in tariffs on behalf of clients, has applied for $500 million in refunds in the first phase and expects customers to receive refunds within one to three months after UPS receives reimbursement from the Treasury. DHL has similarly filed claims for nearly all eligible shipments where it served as the importer of record and is returning refunds as they are received. While major retailers like Amazon, Best Buy, and Costco have received tariff refunds, most plan to use the funds to lower prices for customers rather than issue direct refunds. Amazon CFO Brian Olsavsky noted the company absorbed some tariff costs but will refund customers in limited cases where import charges were explicitly passed on. Best Buy CEO Cori Barrie and Costco CEO Ron Vachris both indicated their companies would use refunds to deliver value back to customers, though the timing and amount remain uncertain. More than 80 class-action lawsuits have been filed by consumers seeking recovery of tariff-related price increases, though legal experts say plaintiffs face significant hurdles proving direct tariff pass-throughs.