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The UPS has begun issuing refunds on tariffs, a move that could help importers eliminate some money stress. In February, the Joint Economic Committee released a report finding that the average American family had already paid more than $1,700 in tariffs since Trump took office. Since the tariffs were deemed unlawful, the United Parcel Service, Inc. (UPS) has taken steps to return that money to the importers who paid the higher costs.
Here's what to know about the tariff refunds, whether you might be eligible for a refund, and how to file a request.
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The Supreme Court tariff ruling
On February 20, 2026, the Supreme Court found that the Trump administration didn't have the authority to use the International Emergency Economic Powers Act (IEEPA) to implement tariffs. The 6-3 decision determined that the tariffs implemented in 2025 were unlawful, and it began the process of removing the tariffs and refunding the money that had been wrongfully collected.
Though the Supreme Court determined many of Trump's tariffs were unlawful, other duties implemented under other laws, including Section 232 tariffs, weren't affected by the ruling and remain in effect. Those include tariffs on steel, aluminum, vehicles and vehicle parts, timber and lumber, copper parts, upholstered furniture, and more.
The tariffs that UPS plans to refund
UPS has been working with U.S. Customs & Border Protection in preparation for dispersing the tariff refunds, and UPS CEO Carol Tomé confirmed that UPS processed 16 million IEEPA-related entries and remitted more than $5 billion in tariffs to the U.S. Treasury. The company has begun filing refund requests, starting with a first batch of approximately $500 million covering 2.5 million entries.
"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 are going to remit it right back to our customer," said Tomé.
Who's eligible for a refund
The UPS refunds include 2025 tariffs that were implemented under the IEEPA, and which have now been deemed unlawful. Though many customers shouldered the burden of those tariffs in the form of higher retail costs, only importers are eligible to apply for refunds from UPS, since importers were the ones who actually paid the tariffs.
That's no small financial loss. According to the Joint Economic Committee, from February 2025 to January 2026, Americans paid more than $231 billion in tariff costs. While importers may receive refunds, the average family is unlikely to receive any of the extra money that they paid back.
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How the tariff refund process works
To facilitate tariff refunds, Customs & Border Protection created a Consolidated Administration and Processing of Entries (CAPE) digital platform, which launched on April 20, 2026. Importers may use the platform to request refunds for tariffs. Importers must provide the specific requested documentation, and the refunds are processed in phases. Once Customs & Border Protection reviews and approves refund requests, the refunds are paid electronically via ACH.
How UPS is issuing tariff refunds
The process of applying for tariff refunds may be time-consuming, especially for importers who need to file many requests. If UPS is the importer of record on a shipment, UPS plans to retrieve the tariff refunds and issue those refunds to the customers; the customers do not need to file a tariff refund request.
According to UPS, it should take approximately 60 to 90 days for tariff refunds to be delivered after the requests are approved.
Additional UPS support
The UPS is also offering a UPS CAPE solution option, in which the UPS supports a business through the filing process. In this optional service, UPS prepares and submits CAPE filings for UPS-brokered entities. The support may include eligibility checks and data remediation, CAPE preparation and submission, status monitoring, and ACH support. This service is only available to UPS broker entities.
How FedEx and DHL are addressing refunds
FedEx has said that it plans to repay customers who paid tariffs, noting that the company plans to issue IEEPA tariff refunds to the shippers and consumers who originally paid those charges. FedEx is filing requests for refunds for shipments in which it acted as a customs broker. Once FedEx receives the refunds from Customs & Border Protection, it plans to issue those refunds to customers.
DHL has also stated that as it receives refunds, it plans to pass those refunds on to the parties that originally paid the tariffs.
Bottom line
Only importers are eligible to file a tariff refund request, so everyday consumers who paid higher prices for products because of tariffs aren't eligible for refunds. As a result, most individuals don't need to take action regarding the UPS refunds. If you have a small business and imported goods directly in 2025, you should investigate your importer-of-record status and consult a customs broker if needed.
While many tariffs have been eliminated, inflation is still keeping prices high. Careful comparison shopping may help you keep more of what you earn while navigating these climbing retail prices.
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