Millions of dollars in tariff rebates are starting to reach businesses that paid import duties last year; Major shipping companies confirm they are returning money to customers rather than retaining it.
FedEx says it has already received $800 million in tariff refunds from the U.S. government, while UPS says it expects billions more to be refunded eventually. DHL has also begun distributing refunded taxes as the federal refund program expands with additional phases this summer.
FedEx announced that it has received approximately $800 million in tariff refunds from the federal government under the Customs Automated Processing Environment (CAPE) refund program.
The company said the money was not retained as revenue. Instead, it is held until it is returned to customers who have already paid the duties.
Brie Carere, FedEx’s chief customer officer, told investors during the company’s earnings call on Tuesday that customer payments are expected to begin in August.
The announcement represents one of the largest public announcements ever made regarding the tariff rebate program.
FedEx says changing trade policy remains challenging
Shipping companies took a leading role in seeking refunds after tariffs collected under the International Emergency Economic Powers Act (IEEPA) were ruled eligible for refunds.
Unlike many retailers and manufacturers, shipping companies often act as Importer of Record (IOR) for customers; This means tariff charges often appear as separate items on invoices.
This transparency makes it easier to determine exactly how much each customer paid and simplifies the refund process for refunded taxes.
Despite the potential benefit of tariff rebates, FedEx says changing trade policies continue to create operational uncertainty.
CEO Raj Subramaniam highlighted this impact during the company’s last earnings call.
“We achieved these results despite several significant headwinds, particularly global trade policy changes,” he said.
As additional phases of the government’s refund program take effect this summer, businesses in the shipping, retail and manufacturing sectors will be watching closely to determine how much of the estimated $166 billion in tariffs could ultimately be refunded to importers and consumers.
DHL confirms refund payments have started
DHL also confirmed that customer returns are currently ongoing.
While the company declined to disclose the total amount it is requesting from the government, a spokesperson confirmed the funds are starting to arrive.
“DHL is reconciling these amounts and refunding the money to customers who originally paid the taxes.”
The company said it will continue to process refunds as additional payments are received through the federal refund program.
UPS expects billions of dollars in additional tariff refunds
UPS believes it could ultimately receive approximately $5 billion in tariff rebates.
The company said it immediately applied for about $500 million during the first phase of the government’s CAPE reimbursement program.
CEO Carol Tomé emphasized that the company does not intend to keep any of the refunded money.
“We are just a transit point,” he said. “As soon as we receive the money, we will send it back to our customer.”
UPS also said in a statement: “We will expand our efforts as CBP initiates future phases.”
More repayment opportunities coming in phases
The current repayment effort is just the beginning.
Phase 2 of the CAPE reimbursement program is scheduled to begin on June 29, while Phase 3 is expected to begin at the end of July.
Each new phase expands the categories of tariffs eligible for refunds based on factors including when the tariffs were first paid in the nearly 14 months since President Donald Trump first announced blanket tariffs.
As additional phases open, more businesses may be eligible to reclaim previously paid taxes.
The overall refund program could include up to $166 billion in tariff collections.
It is often simpler for shipping companies to refund money because tariff charges are stated separately on customer invoices.
Many importers closely monitored the refund process and pressured shipping providers to refund refunded duties as soon as they were received from the government.
Retailers face a more complex refund challenge
Other businesses face a more difficult challenge because tariffs were often included in product prices rather than broken down into individual items.
This complexity has resulted in numerous customer lawsuits seeking compensation from retailers and manufacturers.
Costco has been sued by customers seeking refunds and has stated that it intends to refund the money.
CEO Ron Vachris said during a recent earnings call that customers will receive refunds “in some form.”
Walmart also announced price cuts on nearly 7,200 products and outlined plans to use its refunds.
Tariff uncertainty continues for businesses
The payback process comes as companies continue to navigate the evolving U.S. trade policy environment.
Many imports remain subject to the 10% global tariff imposed under Section 122 of the Trade Act 1974. These taxes also face legal challenges, creating the possibility of additional refunds in the future.
Meanwhile, the Trump administration is expected to introduce a new permanent tariff framework that could go into effect as early as July.
Ongoing policy changes have forced many businesses to plan for both potential refunds and future tariff costs.
Did you enjoy the Financial Freedom Countdown content? Be sure to follow us!
14 essential strategies to maximize your Social Security and avoid costly mistakes
Social Security is a vital lifeline for many seniors, providing significant income support during retirement. At a time when inflation is at its highest level in four decades, Social Security’s inflation-adjusted benefits provide protection against rising costs.
Rising interest rates have disrupted many retirement portfolios and caused bond fund values to decline. In this volatile financial environment, Social Security can stabilize a typical stock-bond retirement portfolio. By implementing smart strategies, retirees can maximize their Social Security benefits and ensure a more secure financial future.
14 Essential Strategies to Maximize Your Social Security and Avoid Costly Mistakes
11 reasons to claim Social Security early
Deciding when to claim Social Security is often about maximizing your benefits. Financial planners generally recommend delaying your request for as long as possible to secure the highest monthly payment. Your benefit is based on your lifetime earnings, with full payout available at your full retirement age (FRA); this age is currently between 66 and 67 years old, depending on your year of birth. Claiming before FRA will result in a permanent decrease in your monthly earnings, while waiting after FRA will result in a permanent increase. But the decision isn’t just about maximizing the monthly check. Personal factors such as health, family circumstances and financial needs can play an important role in determining the right time to make a claim.
11 Reasons to Apply for Social Security Early
Did you find this article helpful? We’d love to hear your thoughts! Leave a comment and share your thoughts in the box on the left side of the screen.
Also, would you like to be informed about our latest content?
1. Follow us by clicking the (+Follow) button above,
2. Give a Like to the article in the upper left corner of the screen.
3. And finally, if you think this information would benefit your friends and family, feel free to share it with them!
John Dealbreuin came to the United States from a third world country without knowing anyone and with only $1,000; Guided by an immigrant dream. He reached his retirement number in 12 years.
he started Financial Freedom Countdown helping everyone think differently about financial challenges and live their best life. John lives in the San Francisco Bay Area and enjoys hiking and weight training.
Here are the tools he recommends
Personal Capital: This is a free tool that John uses to keep track. net worth regularly and retirement planner. He also warns her about hidden fees and budget tracker including.
Platforms like Yield Street offer investment options art, legal, real estate, structured notes, venture capitaletc. They also have fixed income portfolios that span multiple asset classes with a single investment. Low minimums of $10,000.
