The day after the Supreme Court’s decision striking down President Donald Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA), Commerce Secretary Scott Bessent offered bleak odds of consumers receiving refunds for the $166 billion in tariff revenue collected: “I got a feeling the American people won’t see it.”
But after the U.S. Customs and Border Protection (CBP) launched its online tariff refund platform—the Consolidated Administration and Processing of Entries (CAPE)—for U.S. importers, some companies are beginning to roll out plans to pass down their returns to customers who footed the bill for the import taxes. FedEx and UPS both announced on Tuesday plans to return rebates from the levies to customers.
“We are working with the Customs Border Protection to apply for those refunds. Our approach is to work with the U.S. government and not to sue the U.S. government,” UPS CEO Carol Tome said in a Tuesday earnings presentation. “We think it’s going to take some time before the Treasury remits money to us, but as soon as we get that money, we’re going to remit it right back to our customers,” she added.
Tome said about $5 billion will become available from the tariff refunds. FedEx initially said in February it intended to issue refunds to customers who initially paid the tariff charges, and reiterated the pledge this week. Both companies told Fortune they have begun the refund application process.
FedEx was the first of thousands of companies to sue the Trump administration over tariff refunds, asking the government for a “full refund” on the cost of the levies, as well as interest on the taxes, attorney fees, and other costs for bringing the action. Last year, the company estimated it would take a $1 billion hit from the levies over the course of the fiscal year, which ends May 31. UPS and DHL did not sue the Trump administration over the refunds.
Americans looking for tariff refunds
CBP said after it processes the first wave of tariff refund applications, it will distribute payouts in about 60 to 90 days, but consumers are already antsy about the possibility of tariff refunds. American households bore the brunt of tariff costs, according to Federal Reserve data, paying for about 90% of the levies in costs passed down from importers.
For e-commerce shoppers, much of the sticker shock came from the Trump administration’s suspension of the de minimis rule, which eliminated a tariff exception for imports valued at $800 or less without import taxes. One customer of a fragrance oil company based in Canada paid $35.75 for his order and was slapped with an additional $10.80 tariff bill from FedEx when his package arrived, he told the Associated Press.
“It wasn’t worth the $10 tariff for a $27 purchase,” the customer said.
Other online shoppers have taken matters into their own hands. FedEx customer Matthew Resier of Miami filed a proposed class action lawsuit against the shipping giant, alleging it was a “customs broker” and charged duties on duty-free products, including $36 on taxes and fees on a pair of German shoes. Customers from Costco and Ray-Ban-maker EssilorLuxottica, filed similar actions demanding refunds.
“Our intent is straightforward,” a FedEx spokesperson told Fortune in a statement at the time. “If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges.”
