FedEx Sues for Trump Tariff Refund

FedEx has initiated legal proceedings against the US government, seeking a comprehensive refund of tariffs paid under President Trump's controversial emergency trade measures.

In April of last year, Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose elevated tariffs on imports from most countries. However, the Supreme Court ruled last week that the IEEPA did not grant the president authority to levy such duties, effectively declaring the tariffs illegal.

This landmark decision has established a precedent for companies to pursue reimbursement of the additional import duties paid since the tariffs' implementation. In its filing with the US Court of International Trade, FedEx named US Customs and Border Protection, its commissioner Rodney Scott, and the United States as defendants, though the company has not disclosed the specific value of the refund it seeks.

The ramifications extend far beyond FedEx. The Trump administration has accumulated at least $130 billion in revenue from these now-invalidated tariffs. Hundreds of firms, including Revlon, Alcoa, Bumble Bee, and Costco, have filed similar lawsuits. Notably, the Supreme Court's ruling, while determining the tariffs' illegality, provided no guidance on the refund process, prompting Trump and Treasury Secretary Scott Bessent to suggest that litigation could persist for years. Meanwhile, Trump has already moved to implement alternative tariffs under Section 122 of the 1974 Trade Act.