Businesses can apply for customs duty refunds. Will consumers see it?
Companies are not required to share tariff refunds with customers, but some have said they plan to pass on some relief.
After the Supreme Court struck down President Donald Trump’s sweeping tariffs in February, the nation’s largest shipping companies, UPS and FedEx, pledged to share tariff refunds with customers.
As first reported by Reuters, UPS CEO Carol Thome said on a post-earnings conference call with investors that the company collected about $5 billion in tariffs from customers. Tomé added that UPS plans to issue customs refunds to customers.
In a statement emailed to USA TODAY, UPS acknowledged that it is working with the federal government to process refunds for customs duties made earlier this year.
“UPS is processing refunds for eligible packages for which we were the importer. As CBP undertakes future steps, we will expand our efforts. We are committed to supporting our customers during the refund process,” UPS said.
FedEx also told Reuters it promised to issue refunds “as soon as we begin receiving refunds from CBP.”
FedEx did not immediately respond to USA TODAY’s request for comment.
Customs refunds are coming soon
On February 20, the Supreme Court dealt a major blow to President Trump’s economic policies, ruling that he does not have the authority to impose sweeping tariffs with the stroke of a pen. The ruling came despite President Trump’s warning that repealing the tariffs would have “devastating national security, foreign policy, and economic consequences.”
Now, more than two months after the ruling, U.S. companies that paid these fees have begun applying for refunds through the new Customs and Border Protection agency.
These refunds could total about $166 billion, with more than 330,000 importers paying duties on more than 53 million shipments, according to court filings. Additional court documents revealed that the federal government plans to issue the first round of refunds “on or about” May 11.
Contributed by Rachel Barber and Maureen Groppe, USA TODAY
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Contact us at fernando.cervantes@usatodayco.com and follow us at X @fern_cerv_.
