FedEx First To Sue for Refund Following Supreme Court Ruling Against Trump Tariffs

FedEx filed suit against the federal government on Monday, becoming the first major corporation to demand a refund of tariffs paid by the company under the International Emergency Economic Powers Act since the Supreme Court struck them down last week. The complaint, filed in the Court of International Trade against the government and U.S. Customs and Border Protection, seeks a “full refund” of the tariffs with interest and asks the court to award attorneys’ fees and “further relief as this Court deems proper.” FedEx, whose share price plunged 20 percent immediately after President Trump unveiled his “Liberation Day” tariffs, has repeatedly warned of the levies’ toll on its bottom line. In September, FedEx projected that its estimated operating profits would take a $1 billion hit during the current fiscal year because of the import taxes.“Plaintiffs have paid IEEPA duties to the United States and thus have suffered injury caused by those orders. The relief Plaintiffs seek from this Court would redress those injuries,” the company wrote in its complaint. FedEx did not disclose a specific figure it hopes to recover. Estimates suggest the government collected roughly $170 billion under the International Emergency Economic Powers Act, which the Court determined last Friday does not authorize the president to levy import duties.The lawsuit is likely to be the first of many, as analysts have predicted that the Supreme Court ruling would unleash the floodgates for companies seeking compensation. The 6-3 decision nullified both the 10 percent “reciprocal” tariffs Mr. Trump imposed on virtually all of America’s trading partners and the steeper levies directed at Mexico, Canada, and China for their alleged role in permitting fentanyl to flow into the country. Tariffs on steel and aluminum, imposed under separate statutory authority, remain in effect.The Court declined, however, to address whether the government must refund importers who paid the duties, leaving that question to the lower courts.Since Mr. Trump unveiled his tariff scheme last April, more than 1,500 companies have filed tariff-related suits with the Court of International Trade, including Costco, Goodyear, and J. Crew. By the end of 2025, more than 300,000 importers had paid the now-invalidated duties.Those companies are likely to face a prolonged fight to recover their money. Treasury Secretary Scott Bessent has said the government has sufficient cash on hand to cover the refunds, but warned that the process could stretch well beyond a year.In previous court filings the government has stated that it would refund companies if ordered to do so. In December, lawyers for the Department of Justice urged the court to block a preliminary motion against the tariffs, writing that the administration has “made very clear — both in this case and in related cases — that they will not object to the Court ordering reliquidation of plaintiffs’ entries subject to the challenged IEEPA duties if such duties are found to be unlawful.”In the same filing, government officials assured that any tariffs finalized before the Supreme Court ruling “will not interfere with the availability of refunds after a final decision.” Senate Democrats on Monday introduced a bill that would require U.S. Customs to provide tariff refunds plus interest within 180 days with an emphasis on prioritizing small businesses.

FedEx First To Sue for Refund Following Supreme Court Ruling Against Trump Tariffs

FedEx First To Sue for Refund Following Supreme Court Ruling Against Trump Tariffs

More from the New York Sun

Top Nvidia Shareholders Urge Board To Consider Jensen Huang’s Return

Democrats Flip Alaska Governorship as Historic Midterm Wave Rolls On

Trump’s Asia Agenda Includes Putin But Not Kim, With Nvidia Scandal Off the Table

FAA Rules Out Cyberattack, AI Involvement in Nationwide Ground Stop

Buses, Delays, and Forfeit Threats: Air Traffic Shutdown Leaves Sports Teams Scrambling To Make Games

What Was Katie Zacharia’s Husband Doing With North Korea?

Sri Lankan Spared Execution For Deleted Facebook Post in Saudi Arabia, Remains in Jail

America Pays Twice What Other Rich Nations Do for Health Care. Can Democrats Fix That?

More from the New York Sun

Top Nvidia Shareholders Urge Board To Consider Jensen Huang’s Return

Democrats Flip Alaska Governorship as Historic Midterm Wave Rolls On

Trump’s Asia Agenda Includes Putin But Not Kim, With Nvidia Scandal Off the Table

FAA Rules Out Cyberattack, AI Involvement in Nationwide Ground Stop

Buses, Delays, and Forfeit Threats: Air Traffic Shutdown Leaves Sports Teams Scrambling To Make Games

What Was Katie Zacharia’s Husband Doing With North Korea?

Sri Lankan Spared Execution For Deleted Facebook Post in Saudi Arabia, Remains in Jail

America Pays Twice What Other Rich Nations Do for Health Care. Can Democrats Fix That?