• UPS and FedEx have initiated the process to claim refunds for certain emergency tariffs after a Supreme Court decision invalidated them.
  • The refunds, managed by U.S. Customs and Border Protection (CBP), apply to duties collected under the International Emergency Economic Powers Act (IEEPA), while other tariffs like Section 301 remain unaffected.
  • Refunds are expected to take months to reach shipper accounts, potentially easing cost pressures for the carriers and their customers amid a competitive logistics landscape.

UPS and FedEx have started filing for tariff refunds through CBP's refund process, according to people familiar with the matter, following a Supreme Court ruling that struck down certain emergency tariffs. The move, reported by CNBC on April 21, 2026, hinges on duties collected under the IEEPA, with refunds for eligible entries being processed in stages. Other tariffs, such as those under Section 301, remain in effect, creating a nuanced regulatory backdrop for the global parcel delivery giants.

Efforts to secure these refunds have gained momentum as carriers navigate persistent cost pressures from fuel, labor, and network optimization. In early to mid-2026, market commentary highlighted a competitive landscape, with FedEx showing stronger near-term earnings momentum and UPS focusing on cost control amid slower domestic volume recovery. Without the refunds, companies could face heightened financial strain, though the process is expected to take months to materialize in shipper accounts.

Industry-specific elements are at play here: CBP is implementing the refunds through the Consolidated Administration and Processing of Entries, prioritizing recent entries first. This comes as FedEx pursues a major portfolio reshaping, including plans to spin off its freight unit in 2026 under its DRIVE cost-savings program, while UPS emphasizes efficiency and service reliability. A spokesperson for UPS declined to comment on the specifics of the refund filings, while FedEx did not immediately respond to requests for comment.

Public scrutiny has risen, with lawsuits filed by customers seeking refunds from carriers following the Supreme Court decision, reflecting heightened attention to how policy changes affect consumer costs. In the short term, refunds could improve cash flow for UPS and FedEx, potentially lowering landed costs for importers and indirectly benefiting consumers if passed through. Longer term, this highlights ongoing regulatory risks, with carriers likely to continue strategic adjustments, such as FedEx's planned separations, to sustain margins in a shifting market.

Correction: An earlier version of this article misstated the timeline for refund processing; it is expected to take months, not weeks, based on CBP guidelines.