Katherine Li, West Coast breaking news reporter at the Business Insider.

Paid IEEPA tariffs on overseas purchases? Here is what shipping companies are saying about refunds

If you made an overseas purchase last year that required shipping, the federal government may owe you money.

After Trump ended the de minimis exemption last year, purchasing an item straight from an international vendor, regardless of the item’s value, meant incurring International Emergency Economic Powers Act tariffs.

Now, thanks to a ruling by the Supreme Court that overturned Trump’s IEEPA tariffs, and a ruling by the Court of International Trade ruled that all tariffs paid under IEEPA must be returned, buyers may be able to collect a refund.

The Customs and Border Protection said in a declaration on March 6 that it could start rolling out refunds as soon as April, after some technological updates to its system. The CIT estimates that the CBP owes $165 billion in duties that must be refunded with interest, with about $650 million accruing each month.

Even though Trump introduced a new 10% “global tariff” under Section 122, meaning that overseas purchases will continue to face an extra charge, some shipping companies told Business Insider they are willing to help consumers claw back what they paid under the IEEPA.

From FedEx to USPS, here is what different companies are saying about refunding tariffs paid by individual consumers.

Some companies are willing to help

FedEx was the first company to file a lawsuit with the CIT to secure “a full refund” after the Supreme Court decision.

A spokesperson for FedEx told Business Insider that the lawsuit was “on behalf of our customers” and that the company is committed to returning tariff costs.

“Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” the spokesperson said.

“When that will happen, and the exact process for requesting and issuing refunds will depend in part on future guidance from the government and the court,” the spokesperson added.

Similar to FedEx, UPS told Business Insider that the company will support customers in obtaining IEEPA tariff refunds after a process is established by relevant agencies.

“We remain focused on keeping shipments moving and helping ensure our customers can fully exercise their rights throughout this complex process,” said a UPS spokesperson.

Morgan & Morgan also filed a proposed class action lawsuit in March against FedEx to recover the costs of import duties and fees associated with IEEPA in a legally binding manner.

“While FedEx has stated publicly that they plan to return those funds to their customers, the company did not make any legally binding statements to that effect in their complaint,” said Morgan & Morgan in a statement to Business Insider, “Nor have they mentioned any plan to refund the significant ancillary fees they charged for processing those tariffs.”

Other major companies

USPS is one of the most popular and affordable methods of shipping small goods, but it can be complicated as a government-owned entity.

USPS has been collecting tariffs for items via its prepaid “Delivered Duty Paid” service, mostly to avoid surprise fees and a buildup of abandoned small items at the border. Unlike FedEx or UPS, it is an independent agency that belongs to the executive branch of the federal government.

Though USPS pays for its own operations and is not funded by taxpayers, it is legally complicated for federal agencies to sue each other in court because they are part of the same legal entity, so it is unknown if USPS could obtain refunds for shippers or receivers through legal means. According to the Department of Justice website, a government agency can sue another only if it can prove a concrete adversity of interest.

A USPS spokesperson told Business Insider that the CBP is responsible for questions regarding the “disposition of tariff monies.”

The CBP and shipping company DHL did not respond to requests for comment.




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Tesla FSD

Tesla pulls the plug on one-time purchases of FSD


Edie Leong for The Washington Post via Getty Images

  • Tesla eliminated the option to purchase Full Self-Driving with a one-time fee over the weekend.
  • Previously, Tesla offered FSD as an $8,000 one-time purchase option.
  • Musk has said he plans to hike FSD subscription prices as its capabilities improve.

Tesla has shifted its Full Self-Driving feature to a subscription model.

Over the weekend, the company removed the option to purchase the feature in the US via a one-time flat fee of $8,000.

For years, Tesla owners have been able to purchase the service with a one-time payment that would allow them to use it for the full lifespan of their vehicle. Now, the driver-assist feature is available only via a $99-per-month subscription.

Tesla CEO Elon Musk first announced in January that the change would take effect the following month. In the past, Musk has said that Teslas would serve as “appreciating assets,” suggesting owners could benefit as the software became increasingly more autonomous.

The decision to remove lifetime FSD purchases comes shortly after the carmaker stopped offering Autopilot as a free feature for new Tesla purchases. Previously, Autopilot acted as a free driver-assist feature on the expressway, while FSD was an additional paid feature for navigating city streets.

Tesla first introduced FSD in 2016, and the pricing has swung dramatically over time. In its early days, FSD cost around $5,000, later climbing to a peak of $15,000. In 2024, Tesla reduced the upfront price to $8,000. The carmaker first introduced a subscription option in 2021 for $199 per month, but the price was later lowered to $99 per month.

Musk said in a post on X last month that the carmaker will raise FSD subscription prices as its “capabilities improve.”

Tesla’s move to a more subscription-focused model reflects a broader industry trend. Under an executive performance plan approved last year, Musk’s compensation depends in part on reaching 10 million active FSD subscriptions.

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