Shipping companies FedEx and UPS say they will return money to customers following a February court decision that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

UPS confirmed Wednesday that it is coordinating with U.S. Customs and Border Protection, which has begun accepting refund applications through an online system, to process reimbursements tied to those duties.

The initial stage of refunds will apply to “certain tariff payments made starting Jan. 30, 2026, in addition to pending tariff payments,” according to UPS.

A company spokesperson outlined its approach to handling repayments. “UPS is processing refunds for eligible shipments where we served as the importer,” spokesperson Natasha Amadi said in an email. “We will expand our efforts as CBP launches future phases. We are committed to supporting our customers during the refund process.”

Customs officials have indicated that approved refunds could take between 60 and 90 days to be issued. Government filings show that about 330,000 importers paid more than $166 billion in tariffs subject to potential reimbursement.

During a recent earnings call, UPS CEO Carol Tome said the company had collected roughly $5 billion in tariff charges from customers.

“We are working with the Customs Border Protection to apply for those refunds,” Tome said. “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.”

FedEx, which previously filed suit against the federal government seeking recovery of the import taxes, said it has already begun submitting refund claims through CBP.

A spokesperson emphasized the company’s position, saying, “Supporting our customers as they navigate regulatory changes remains our top priority.” The representative added, “Our intent is straightforward: when refunds are issued to FedEx, we will isse refunds to the shippers and consumers who originally bore those charges.”

The tariffs had affected many consumers after President Donald Trump signed an executive order in July 2025 suspending the “de minimis” exemption for imports valued at $800 or less, leading to additional fees on smaller purchases.

One customer in Florida described the impact, telling The Associated Press that his shipment of fragrance oil from Toronto “wasn’t worth the $10 tariff for a $27 purchase.”

In a 6–3 ruling, the U.S. Supreme Court determined last April that Trump had overstepped congressional authority by setting import tariffs under IEEPA, citing the trade deficit as a national emergency.

Although the Supreme Court did not directly address how refunds should be handled, a judge at the U.S. Court of International Trade later ruled that businesses subject to the tariffs are entitled to reimbursement.

While the decision marked a setback for the administration’s broader trade policy, other tariffs remain in place, including those enacted under Section 232 of the 1962 Trade Expansion Act.

Officials have also indicated that additional tariffs could be introduced in the future.

Trump has criticized companies warning of price increases tied to tariffs and has at times used the possibility of new duties as leverage in negotiations. He also recently commented on companies that have not yet sought refunds.

“I think it’s brilliant if they don’t do that,” Trump told CNBC of companies that hadn’t yet sought reimbursements. “If they don’t do that, they got to know me very well.”