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

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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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A map of the Middle East, showing the Strait of Hormuz in the Persian Gulf, with Iran highlighted and markers on Dubai and Tehran.

Tons of goods are stuck around the Middle East amid shipping and air chaos

by with No Comment Xpandfy

Global supply chains are on edge after the US and Israel launched military strikes on Iran on Saturday, triggering widespread disruption across one of the world’s most critical trade corridors.

The fallout is hitting more than oil tankers moving through the Strait of Hormuz.

Container ships loaded with consumer goods, auto parts, electronics, and food are being rerouted or delayed, while air cargo networks are fracturing under sudden airspace closures.

“Ocean container services in the Persian Gulf have continued unaffected by the recent build-up of military forces in the region, but the escalation in conflict through military strikes means ships will now avoid the area, but for as short a time as possible,” said Peter Sand, the chief analyst at freight-rate analytics platform Xeneta.

On Sunday, MSC — the world’s largest container shipping line by capacity — said it had suspended all bookings for cargo to the Middle East until further notice.

Danish shipping giant Maersk paused Red Sea and Suez Canal sailings amid fears the Iran escalation could spill over into key shipping lanes. The company is rerouting vessels around the Cape of Good Hope in South Africa.

French shipping giant CMA CGM announced Monday it will impose an “Emergency Conflict Surcharge” effective Monday, citing rising security risks. The surcharge will add between $2,000 and $4,000 per container on shipments to and from Gulf and Red Sea countries.

On Saturday, CMA CGM ordered vessels inside or bound for the Gulf to “proceed to shelter.” It also suspended sailings through the Suez Canal and rerouted ships to the Cape of Good Hope.

German shipping giant Hapag-Lloyd introduced a $1,500 per standard container war risk surcharge and suspended vessel transits through the Strait of Hormuz.

Sailing around Africa, rather than through the Suez Canal, absorbs roughly 2.5 million 20-foot container units’ worth of global container capacity, according to Xeneta’s Sand.

Read more about the US-Iran conflict

Air cargo rates may rise

Air freight is also under strain.

Several Middle Eastern airspaces have been closed or restricted, disrupting passenger and cargo flights.

Parcel delivery giant FedEx suspended flights to and from markets including Bahrain, Israel, Qatar, Saudi Arabia, Kuwait, and the UAE, and halted pickup and delivery services in several Gulf countries.

Qatar Airways Cargo temporarily suspended operations due to the closure of Qatari airspace.

DSV, a Danish logistics company, said in an advisory that airspace restrictions are forcing carriers to suspend services or divert flights and lengthen routings.

With less cargo space available on key Asia-Europe and Middle East routes, air freight rates are likely to rise, space will tighten, and airlines may make short-notice schedule and pricing changes, according to DSV.

Ryan Petersen, the CEO of Flexport, wrote on X that conflict in the Middle East has removed 18% of global air freight capacity from the market.

If carriers begin omitting Gulf port calls, containers may be discharged at alternative hubs and trucked onward, wrote Xeneta’s Sand.

The broader concern, however, is what the escalation means for global trade flows through the Red Sea this year. The conflict comes after more than two years of disruption caused by Iran-backed Houthi attacks on commercial shipping.

“The repercussions of the joint military operation by the US and Israel against Iran and subsequent retaliatory action will see the further weaponization of trade and shatter hopes of a large-scale return of container shipping to the Red Sea in 2026,” wrote Sand.




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