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FedEx and UPS said they would return tax refunds to customers after a Supreme Court ruling opened the door to potentially billions of dollars in refunds tied to Trump-era import tariffs.
The companies said they plan to pass on any refunds as the federal government begins processing applications for refunds for jobs collected under the International Emergency Economic Powers Act (IEEPA), a move that could affect dozens of income earners.
UPS CEO Carol Tomé said on the company’s first-quarter earnings call that UPS processed $16 million in IEEPA-related filings and remitted more than $5 billion in taxes to the U.S. Treasury.
“We are pass-through,” Tomé said, adding that once the refund is issued, UPS will send the money “to our customers.”
TRUMP ADMIN STARTS RETURNING $166B TO BUSINESSES IN RESUME OF SUPREME COURT RULING
A United Parcel Service driver loads packages at the New Orleans Convention Center. (Jim West/UCG/Universal Images Group via Getty Images)
FedEx similarly said it intends to refund money to customers as soon as it receives refunds from US Customs and Border Protection (CBP), stressing that logistics firms act as intermediaries in tax collection.
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The development follows a February Supreme Court ruling that found that a 1977 law used by the Trump administration does not authorize presidents to impose tariffs, invalidating a broad set of import duties applied to goods from major trading partners.
FedEx trucks are parked at a distribution center in San Diego, California. (Kevin Carter/Getty Images)
The ruling could trigger a wave of refunds, with an estimated $166 billion in tax collections likely to be subject to refunds, according to government figures cited in court filings.
Thousands of companies have already moved to apply after the federal government launched a new refund processing system earlier this month, signaling strong demand for refunds.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| FDX | Company FEDEX CORP. | 391.92 | +3,34 |
+0.86% |
| UPS | Company UNITED PARCEL SERVICE INC. | 107.61 | +0.98 |
+0.92% |
CBP said it began rolling out a phased refund program on April 20, allowing importers and consumers to submit claims through its online portal. The agency said most valid refunds are expected to be issued within 60 to 90 days of approval, although complex cases can take longer.
For transportation companies such as UPS and FedEx, refunds are not expected to have a significant impact on financial results because the firms primarily collect prices from customers and send them to the federal government.
Still, the scale of the returns highlights the broader economic impact of payments, which have disrupted global trade flows and leveled corporate earnings across many industries.
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While the court’s decision struck down the tariffs imposed under the IEEPA, other trade mechanisms are still in effect, and officials have signaled that some operations may still be conducted under other regulatory authorities.
FOX Business has reached out to FedEx and UPS for further comment.
Reuters contributed to this report.
