UPS to Refund Customers for Illegal Tariffs

UPS Will Refund Customers for Tariffs Ruled Unconstitutional

Shipping giant UPS announced today that it will refund customers for tariffs it collected after the Supreme Court declared them unconstitutional. This move comes as companies can now apply for refunds of billions of dollars in tariffs previously paid to the government. The Supreme Court’s ruling in February found these tariffs illegal, leading to the current refund process managed by Customs and Border Protection.

The total amount of tariffs collected under these emergency powers was nearly $166 billion. UPS, a major importer and processor of international goods, is among the companies that paid these duties. In a statement released moments ago, UPS confirmed its commitment to seeking and returning these funds to its customers.

How the Refund Process Works

UPS stated that for shipments where it acted as the importer of record, the company will proactively request and retrieve tariff refunds on behalf of its customers. Customers do not need to contact UPS to initiate this process. The company has established a system to issue refunds once the money is received from the government.

However, this refund process will not be immediate. UPS will start with the first batch of tariffs paid at the beginning of this year.

Those who paid tariffs last year may have to wait longer. The entire process could take several months, not days.

“For shipments where UPS was the importer of record, we will work to request and retrieve tariff refunds on our customers behalf. There is no need for those customers to contact UPS.”

UPS Statement

Impact on Businesses and Consumers

The decision by UPS to pass these refunds on to its customers is a significant development. Many small and large businesses rely on UPS to import goods from abroad. If these businesses paid tariffs, they are now set to receive those funds back.

While UPS is facilitating the refund from the government, it is up to the individual business to decide whether to pass those savings on to their end customers. For example, if a shopper bought an item directly from overseas and paid an extra tariff through UPS, they could theoretically get that money back. However, if a business absorbed that cost and then resold the item, the shopper might not see a direct refund.

Will Other Shipping Companies Follow Suit?

The question now is whether other major shipping companies, such as FedEx, will adopt a similar approach. FedEx operates a comparable business model, helping individuals and companies ship goods internationally. It is widely expected that other companies might follow UPS’s lead.

NBC News is reaching out to these companies for comment and will provide updates as more information becomes available. For now, UPS is the first major player to publicly commit to refunding these unconstitutional tariffs to its customers.

What to Watch Next

The focus will now shift to how quickly Customs and Border Protection can process these refund applications. Consumers will be watching to see if other shipping companies will offer similar refund programs. The timeline for these refunds, which could take months, will be a key point of interest for businesses and individuals who paid these tariffs.

Source: UPS refunding customers that spent money on tariffs (YouTube)