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Shipping Giants Lag on Tariff Refunds for Small Businesses

By Drooid · · How we work

Core Issue: Slow Refunds After Trump-Era Tariffs

Small-business owners who used FedEx, UPS or DHL as the “importer of record” to pay tariffs imposed during President Donald Trump’s second term report that refunds from these carriers are arriving only after months of effort. Derek Swanson, who imports Japanese kitchen knives, says UPS processed his refund promptly, while FedEx and DHL remain “difficult.” Lenny Merryman, operations manager for Man & Machine, doubts the value of pursuing “thousands in tariff refunds” from DHL and FedEx because the time required may exceed the benefit.

Background: Tariffs, Burden, and the Refund Mechanism

At the start of Trump’s second term, tariffs ranging from 10 % to 49 % were levied on dozens of countries. Small businesses paid these duties through the major shippers, which acted as middlemen between importers and the U.S. government. In February, the Supreme Court struck down several of those tariffs, obligating the federal government to reimburse the levied amounts. Shipping firms were then tasked with vetting each claim against government data before issuing refunds.

Data & Statistics

  • Roughly 234,000 small businesses paid $426,000 more in tariffs from March 2025 through August 2026 than in the preceding 18 months.
  • FedEx reports it has released “hundreds of millions of dollars” in refunds after completing its compliance checks.
  • UPS states its dedicated team is processing “millions of entries” and working through accounting, validation and reconciliation steps.

Official Statements & Responses

  • FedEx emphasizes “precision” and “regulatory compliance,” explaining that each claim must be matched with U.S. government data before payment.
  • The Independent’s coverage notes that FedEx and UPS have each pledged to keep shipments moving while the refund process continues.

Verbatim Quotes

  • “We know these refunds are important to our customers and appreciate their patience throughout this complex process. We remain focused on keeping shipments moving and will share updates as available.” — The company — FedEx (as quoted by The Independent)