Full Breakdown
Refunds for Invalidated Trump Tariffs Begin; UPS and FedEx Promise to Pass Money to Customers
5/1/2026, 7:24:45 PM
Background & Context
In July 2025 President Donald Trump issued an executive order that suspended the $800 “de minimis” exemption, invoking the 1977 International Emergency Economic Powers Act (IEEPA) to levy import duties on a wide range of goods. A 6-3 U.S. Supreme Court ruling on February 20, 2026 held that the President lacked authority to impose those tariffs, rendering roughly $166 billion in collections illegal. The decision left the mechanics of repayment unsettled, prompting the U.S. Court of International Trade to oversee a refund process.
Timeline of the Refund Process
- July 2025 – Trump’s executive order suspends the de minimis rule.
- Feb 20 2026 – Supreme Court invalidates the IEEPA-based tariffs.
- Apr 20 2026 – U.S. Customs and Border Protection (CBP) launches the CAPE (Consolidated Administration and Processing of Entries) online portal for refund claims.
- Apr 29 2026 – Judge Richard Eaton orders the first wave of refunds, targeting a May 11 2026 issuance.
- May 11 2026 (expected) – Initial refunds to be disbursed to eligible importers.
Data & Statistics
- $166 billion in duties collected from more than 330,000 importers on ?53 million entries.
- 21 % of affected entries have been uploaded to CAPE; 3 % have progressed to the liquidation stage.
- UPS processed 16 million IEEPA-related entries and remitted > $5 billion in tariffs; FedEx estimates a $1 billion earnings hit from the levies.
- CBP expects most valid refunds within 60-90 days after approval.
Official Statements & Responses
Judge Eaton’s order directs CBP to post guidance on interest calculations and to update the court by May 12. CBP’s electronic system, live since late April, is reported to function despite occasional username and password resets. UPS CEO Carol Tomé told investors the firm will act as a “pass-through,” returning any recovered funds directly to customers. FedEx announced it will reimburse shippers once CBP issues payments, emphasizing its role as an intermediary. Commerce Secretary Scott Bessent expressed doubt that the public would ultimately see the refunds.
Criticism & Opposition
Consumer groups note that the tariffs forced households to absorb roughly 90 % of the costs, with many shoppers encountering unexpected fees on low-value imports. A Florida consumer described a $10 tariff on a $27 fragrance purchase as “not worth the $10 tariff for a $27 purchase.” The lingering presence of other duties—such as Section 232 levies—has also drawn criticism for sustaining trade barriers despite the IEEPA reversal.
On-the-Ground Reports
Shoppers reported “sticker shock” after the de minimis suspension, prompting individual lawsuits alleging that carriers acted as customs brokers and overcharged on duty-free items. One plaintiff, Matthew Resier of Miami, filed a proposed class action over a $36 tax on German shoes.
Conflicting Reports & Gaps
Sources differ on the proportion of entries processed: the Reuters filing cites 21 % of entries accepted for duty removal, while the Hill notes 21 % of entries uploaded to the system. Additionally, the Supreme Court decision did not specify refund mechanics, leaving uncertainty about interest rates and the timeline for Treasury disbursements.
Verbatim Quotes
- “The discussion also involved questions regarding the interest rate that applies to refund amounts and the method Customs uses to calculate interest,” — Richard Eaton, U.S. Court of International Trade Judge
- “We are just a pass-through,” — Carol Tomé, UPS CEO
- “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.” — Carol Tomé, UPS CEO
- “terrible” and “totally defective.” — Donald Trump, former President
- “I got a feeling the American people won’t see it.” — Scott Bessent, U.S. Commerce Secretary
- “It wasn’t worth the $10 tariff for a $27 purchase.” — Florida consumer
What’s Next
CBP will continue phased CAPE submissions, with subsequent rounds covering tariffs from Jan 30 2026 onward. UPS and FedEx have pledged to expand reimbursements as additional refunds are approved. Lawmakers are monitoring potential new duties under alternative statutes, while importers await Treasury payments that could reshape pricing for U.S. consumers.
