UPS starts Trump tariff refunds
What happened
- UPS began processing eligible Trump-tariff refunds on May 27, 2026, after a Supreme Court ruling invalidated 2025 import duties imposed under emergency powers. - U.S. Customs’ refund system covers more than 330,000 firms, and Trump said companies that skip claims should know him “very well.” - CBP’s CAPE portal launched April 20, and Phase One covers certain entries from January 30 through April 19, 2026.
Why it matters
United Parcel Service has started processing tariff refunds for eligible import shipments after the U.S. Supreme Court struck down key parts of President Donald Trump’s 2025 tariff program. UPS said it is working with U.S. Customs and Border Protection to return funds where applicable, beginning with certain tariff payments made from January 30, 2026, and with pending tariff payments. The move turns a court ruling from February into a practical cash-flow issue for importers, brokers and carriers. It also comes as companies pursue billions of dollars in repayments while the administration’s refund machinery faces scrutiny in court filings and trade litigation. ### Which tariffs are being refunded? The Supreme Court ruled on February 20, 2026, that the International Emergency Economic Powers Act does not authorize a president to impose tariffs. In the consolidated cases *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*, the court invalidated the “Reciprocal Tariffs” first imposed in April 2025 and the trafficking- and immigration-related tariffs tied to fentanyl. (newsweek.com) Ropes & Gray and Skadden, in client alerts summarizing the decision, said the ruling was 6-3. The Associated Press reported on April 19 that the court did not itself order refunds, but a judge at the U.S. Court of International Trade later determined that companies subjected to the IEEPA tariffs were entitled to money back. That left Customs to build a system to receive and process claims. (ropesgray.com) ### Why is UPS involved at all? UPS said on its tariff-refund page that it is processing refunds for shipments where it served as the importer of record. For those shipments, the company said customers do not need to take action because UPS will request and retrieve the refunds on their behalf. UPS also said the first phase covers certain tariff payments made starting January 30, 2026, in addition to pending tariff payments. (usnews.com) Newsweek reported on May 27 that UPS had previously said it processed millions of tariff-affected shipments and remitted more than $5 billion to the U.S. Treasury. That helps explain why carriers and customs brokers are central to the refund process: many importers paid duties through intermediaries rather than directly. (newsweek.com) ### How does the government’s refund system work? U.S. Customs and Border Protection launched the first phase of its CAPE system on April 20, 2026. CBP said CAPE — short for Consolidated Administration and Processing of Entries — is part of the Automated Commercial Environment portal and is designed to let importers submit IEEPA duty refund claims electronically, including interest, on a consolidated basis rather than entry by entry. (newsweek.com) AP reported that importers and brokers could begin filing through the online portal at 8 a.m. when the system launched. CBP said approved claims would take 60 to 90 days to be paid, and the agency would process refunds in phases, starting with more recent tariff payments. UPS repeated that 60-90 day timetable in its own customer guidance. (cbp.gov) ### Why are companies treating the refunds so cautiously? Politico reported on May 12 that more than 26,000 companies had signed up for the refund portal and that businesses were trying to avoid drawing attention to their claims after Trump signaled displeasure. Trump told CNBC, according to Politico, that companies that do not apply for refunds should know him “very well,” and added, “I’ll remember them.” (usnews.com) Bloomberg Law reported in February that more than 100 companies filed new lawsuits in the days after the Supreme Court ruling, pushing the total number of tariff-related cases above 2,000. FedEx, Dyson, Dollar General, L’Oreal units, Skechers and others were among the companies seeking to preserve or recover claims, according to that report. (politico.com) ### What is the dispute over the refund system itself? CBP published guidance on May 11 describing CAPE declarations and error definitions, confirming that the agency was still refining the mechanics of the portal after launch. The Daily Beast reported that court documents in related litigation pointed to a roughly $10 billion error tied to the refund system; that figure could not be independently confirmed from primary court records in this search, but CBP’s own materials show the system is phased, technical and still being updated. (news.bloomberglaw.com) AP reported on the day the portal opened that some users described it as buggy, with delays and lag time when trying to create accounts and submit information. That early friction matters because claims must be filed through the portal and because reimbursement timing depends on Customs approval. (cbp.gov) ### What happens next for importers? Phase One applies to certain unliquidated entries and certain entries within 80 days of liquidation, covering the January 30 to April 19, 2026 window, according to CBP and UPS guidance. Later phases are expected to expand eligibility as Customs rolls out more of the CAPE process. (usnews.com) The next milestones are administrative, not judicial. CBP is continuing to update CAPE guidance, UPS has said it will expand its refund efforts as future phases open, and approved claims are expected to be paid electronically after review. (cbp.gov 1) (cbp.gov 2)
Key numbers
- UPS began processing eligible Trump-tariff refunds on May 27, 2026, after a Supreme Court ruling invalidated 2025 import duties imposed under emergency powers.
- Customs’ refund system covers more than 330,000 firms, and Trump said companies that skip claims should know him “very well.” CBP’s CAPE portal launched April 20, and Phase One covers certain entries from January 30 through April 19, 2026.
- Supreme Court struck down key parts of President Donald Trump’s 2025 tariff program.
- Customs and Border Protection to return funds where applicable, beginning with certain tariff payments made from January 30, 2026, and with pending tariff payments.
What happens next
- For those shipments, the company said customers do not need to take action because UPS will request and retrieve the refunds on their behalf.
- (usnews.com) Newsweek reported on May 27 that UPS had previously said it processed millions of tariff-affected shipments and remitted more than $5 billion to the U.S.
- (newsweek.com) AP reported that importers and brokers could begin filing through the online portal at 8 a.m.
Quick answers
What happened in UPS starts Trump tariff refunds?
UPS began processing eligible Trump-tariff refunds on May 27, 2026, after a Supreme Court ruling invalidated 2025 import duties imposed under emergency powers. U.S. Customs’ refund system covers more than 330,000 firms, and Trump said companies that skip claims should know him “very well.” CBP’s CAPE portal launched April 20, and Phase One covers certain entries from January 30 through April 19, 2026.
Why does UPS starts Trump tariff refunds matter?
United Parcel Service has started processing tariff refunds for eligible import shipments after the U.S. Supreme Court struck down key parts of President Donald Trump’s 2025 tariff program. UPS said it is working with U.S. Customs and Border Protection to return funds where applicable, beginning with certain tariff payments made from January 30, 2026, and with pending tariff payments. The move turns a court ruling from February into a practical cash-flow issue for importers, brokers and carriers. It also comes as companies pursue billions of dollars in repayments while the administration’s refund machinery faces scrutiny in court filings and trade litigation. Which tariffs are being refunded? The Supreme Court ruled on February 20, 2026, that the International Emergency Economic Powers Act does not authorize a president to impose tariffs. In the consolidated cases *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*, the court invalidated the “Reciprocal Tariffs” first imposed in April 2025 and the trafficking- and immigration-related tariffs tied to fentanyl. (newsweek.com) Ropes & Gray and Skadden, in client alerts summarizing the decision, said the ruling was 6-3. The Associated Press reported on April 19 that the court did not itself order refunds, but a judge at the U.S. Court of International Trade later determined that companies subjected to the IEEPA tariffs were entitled to money back. That left Customs to build a system to receive and process claims. (ropesgray.com) Why is UPS involved at all? UPS said on its tariff-refund page that it is processing refunds for shipments where it served as the importer of record. For those shipments, the company said customers do not need to take action because UPS will request and retrieve the refunds on their behalf. UPS also said the first phase covers certain tariff payments made starting January 30, 2026, in addition to pending tariff payments. (usnews.com) Newsweek reported on May 27 that UPS had previously said it processed millions of tariff-affected shipments and remitted more than $5 billion to the U.S. Treasury. That helps explain why carriers and customs brokers are central to the refund process: many importers paid duties through intermediaries rather than directly. (newsweek.com) How does the government’s refund system work? U.S. Customs and Border Protection launched the first phase of its CAPE system on April 20, 2026. CBP said CAPE — short for Consolidated Administration and Processing of Entries — is part of the Automated Commercial Environment portal and is designed to let importers submit IEEPA duty refund claims electronically, including interest, on a consolidated basis rather than entry by entry. (newsweek.com) AP reported that importers and brokers could begin filing through the online portal at 8 a.m. when the system launched. CBP said approved claims would take 60 to 90 days to be paid, and the agency would process refunds in phases, starting with more recent tariff payments. UPS repeated that 60-90 day timetable in its own customer guidance. (cbp.gov) Why are companies treating the refunds so cautiously? Politico reported on May 12 that more than 26,000 companies had signed up for the refund portal and that businesses were trying to avoid drawing attention to their claims after Trump signaled displeasure. Trump told CNBC, according to Politico, that companies that do not apply for refunds should know him “very well,” and added, “I’ll remember them.” (usnews.com) Bloomberg Law reported in February that more than 100 companies filed new lawsuits in the days after the Supreme Court ruling, pushing the total number of tariff-related cases above 2,000. FedEx, Dyson, Dollar General, L’Oreal units, Skechers and others were among the companies seeking to preserve or recover claims, according to that report. (politico.com) What is the dispute over the refund system itself? CBP published guidance on May 11 describing CAPE declarations and error definitions, confirming that the agency was still refining the mechanics of the portal after launch. The Daily Beast reported that court documents in related litigation pointed to a roughly $10 billion error tied to the refund system; that figure could not be independently confirmed from primary court records in this search, but CBP’s own materials show the system is phased, technical and still being updated. (news.bloomberglaw.com) AP reported on the day the portal opened that some users described it as buggy, with delays and lag time when trying to create accounts and submit information. That early friction matters because claims must be filed through the portal and because reimbursement timing depends on Customs approval. (cbp.gov) What happens next for importers? Phase One applies to certain unliquidated entries and certain entries within 80 days of liquidation, covering the January 30 to April 19, 2026 window, according to CBP and UPS guidance. Later phases are expected to expand eligibility as Customs rolls out more of the CAPE process. (usnews.com) The next milestones are administrative, not judicial. CBP is continuing to update CAPE guidance, UPS has said it will expand its refund efforts as future phases open, and approved claims are expected to be paid electronically after review. (cbp.gov 1) (cbp.gov 2)
