FedEx Seeks Full Refund of Trump-Era Emergency Tariffs
FedEx, the global transportation giant, has filed a lawsuit demanding a full refund of import duties paid under former President Donald Trump’s emergency tariffs, which the U.S. Supreme Court ruled unlawful last week.
The tariffs, imposed in April last year under the International Emergency Economic Powers Act (IEEPA), were introduced as part of Trump’s aggressive trade agenda. But the Supreme Court has now determined that IEEPA does not grant any president the authority to impose import taxes.
The ruling opens the door for hundreds of companies to claim refunds on billions paid in tariffs.
What FedEx Is Arguing
In its filing with the U.S. Court of International Trade, FedEx asserts:
“Plaintiffs seek for themselves a full refund of all IEEPA duties Plaintiffs have paid to the United States.”
The lawsuit names:
- U.S. Customs and Border Protection (CBP)
- CBP Commissioner Rodney Scott
- The United States government
FedEx did not disclose the exact refund amount it is seeking.
However, as the importer of record, the company claims it had no choice but to pay the tariffs at the border and now seeks redress.
A company statement added that FedEx has taken “necessary action to protect the company’s rights” following the Supreme Court ruling.
The CBP has not yet commented.
Democrats Push Legislation for Fast Refunds
On Monday, 22 Democratic Senators introduced a bill requiring the Trump administration to:
- Refund all IEEPA tariff revenue within 180 days
- Include interest
- Prioritise small businesses in reimbursements
The Trump administration reportedly collected at least $130 billion (₹10.8 lakh crore) through these emergency tariffs.
Hundreds of Companies Rush to File Claims
FedEx is not alone. Prior to Friday’s ruling, a wave of major corporations filed pre-emptive lawsuits, including:
- Revlon
- Alcoa
- Bumble Bee Foods
- Costco
Costco’s lawsuit argued:
“The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning.”
The companies aimed to secure a position for refunds should the tariffs be invalidated — which has now happened.
Trump Responds with New Tariffs Under a Different Law
One day before the Supreme Court ruling, Trump signed a proclamation using Section 122 of the Trade Act of 1974 to impose new 10% temporary tariffs on imports from all countries. He announced the next day that these would rise to 15%.
Both Trump and Treasury Secretary Scott Bessent have warned that refund claims could drag on for years in the courts.
What’s Next?
- The Supreme Court ruling does not specify how refunds should be processed.
- Courts must now decide how, when, and to whom refunds are issued.
- The Biden administration and Congress may intervene to streamline reimbursements.
- The new tariffs under the 1974 Act could trigger fresh legal battles.
The FedEx lawsuit is expected to become a test case, potentially setting the precedent for billions in refund claims.