FedEx Seeks Full Tariff Refund After Supreme Court Says Trump Tariffs Were Illegal

FedEx is asking for a full refund of tariffs paid under a Trump administration policy. This follows a Supreme Court ruling that said the tariffs were not legal.
By Newsroom | Business, Law |

FedEx has filed a lawsuit seeking a complete refund of tariffs it paid under a policy enacted by the Trump administration. This action follows a U.S. Supreme Court decision that found these tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), to be unlawful. The company aims to reclaim duties paid under this specific legal framework, which has now been struck down by the nation's highest court.

In April [Year], the Trump administration implemented increased tariffs on goods from most countries. These were enacted using the authority granted by the International Emergency Economic Powers Act (IEEPA).

FedEx Sues for Refund of Trump Tariffs Rejected by Supreme Court - 1

  • The Supreme Court, in a 6-3 decision last week, ruled that President Trump exceeded his presidential authority by using the IEEPA to impose these sweeping tariffs.

  • The ruling stated that the IEEPA did not grant the president the power to impose these taxes on imports.

  • This decision has opened the door for companies that paid these duties to seek refunds.

  • The tariffs in question were imposed under the IEEPA and do not affect duties levied under other laws, such as those on imported steel, aluminum, or certain vehicles.

FedEx has initiated a lawsuit in the U.S. Court of International Trade.

  • The company is seeking an order to compel U.S. Customs and Border Protection (CBP) to refund all duties paid under the IEEPA.

  • The lawsuit names CBP, its commissioner Rodney Scott, and the United States of America as defendants.

  • FedEx has not specified the total dollar amount of the refund it is requesting.

  • The company stated that this action is necessary to "protect the company's rights as an importer of record to seek duty refunds."

Broader Corporate Response

FedEx is not the only major corporation pursuing refunds. A number of other large companies have filed similar suits.

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FedEx Sues for Refund of Trump Tariffs Rejected by Supreme Court - 2

  • Costco filed a lawsuit in December [Year] seeking a full refund of tariffs paid under IEEPA.

  • Other companies that have initiated legal action include:

  • Revlon (beauty company)

  • Bumble Bee Foods (grocery company)

  • EssilorLuxottica (eyewear maker)

  • Kawasaki (motorcycle manufacturer)

  • Yokohama Tire (Japanese auto supplier)

  • The law firm Crowell & Moring is representing FedEx and many of these other companies in their tariff refund cases.

Potential Financial Implications

The Supreme Court's ruling and subsequent lawsuits could lead to significant financial repercussions.

  • The prospect of billions of dollars in repayment claims is now a possibility across corporate America.

  • In previous quarterly earnings reports, FedEx executives had indicated that these tariffs were expected to impact profits. For instance, one report mentioned an expected $1 billion hit to profits in 2025 due to the administration's policies.

  • Both former President Trump and Treasury Secretary Scott Bessent have suggested that the issue of refunds could remain tied up in court for years.

  • Government lawyers had previously argued to judges that tariff collection should continue during appeals, stating that refund mechanisms would be available if the administration ultimately lost.

Expert Analysis and Commentary

While the Supreme Court has declared the tariffs unlawful, the path to refunds for companies is still being shaped through legal proceedings.

FedEx Sues for Refund of Trump Tariffs Rejected by Supreme Court - 3

"The Supreme Court's decision was clear on the unlawful nature of the tariffs under the IEEPA. The current lawsuits, like FedEx's, are a direct consequence of that ruling, aiming to recover payments made under that specific legal authority."

The core of the legal dispute centers on whether the IEEPA provided the necessary authority for the broad tariffs imposed, and whether companies that paid these duties are entitled to a full recovery. The Supreme Court's ruling addressed the former, and now the courts will likely grapple with the specifics of the latter. The initial declaration by the trade court that the tariffs were unlawful, prior to the Supreme Court's final judgment, suggests a history of judicial skepticism towards the administration's actions in this matter.

Conclusion and Next Steps

The filing of the lawsuit by FedEx represents a significant corporate effort to reclaim funds following the Supreme Court's decision.

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  • The Supreme Court has definitively ruled the tariffs imposed under the IEEPA illegal, exceeding presidential authority.

  • FedEx, along with numerous other companies, is now seeking full refunds of the duties paid under this invalidated policy.

  • The U.S. Court of International Trade will now consider FedEx's claim and potentially others, determining the process and extent of these refunds.

  • The financial outcome of these cases remains to be seen, with the possibility of substantial repayments to affected businesses.

Sources

Frequently Asked Questions

Q: Why is FedEx suing the Trump administration for tariff refunds?
FedEx is suing to get back money it paid in tariffs. The Supreme Court recently ruled that the Trump administration's tariffs, used under a law called IEEPA, were illegal and the President did not have the power to use them.
Q: What did the Supreme Court rule about the Trump tariffs?
The Supreme Court said in a 6-3 vote that the President went beyond his power by using the International Emergency Economic Powers Act (IEEPA) to put these tariffs on goods. The court decided the IEEPA did not give the President the right to do this.
Q: Which tariffs are affected by the Supreme Court ruling and FedEx's lawsuit?
The ruling and FedEx's lawsuit are about tariffs put in place using the IEEPA. They do not affect other tariffs, like those on steel, aluminum, or some vehicles, which were put in place using different laws.
Q: Is FedEx the only company asking for a tariff refund?
No, FedEx is not alone. Many other large companies, like Costco, Revlon, and Kawasaki, have also filed lawsuits asking for refunds of tariffs they paid under the same IEEPA law that the Supreme Court found illegal.
Q: How much money could companies get back from these tariff refunds?
It is possible that companies could get back billions of dollars in total. FedEx has not said exactly how much money it wants, but it is seeking a full refund of all duties paid under the IEEPA policy.