Share and Follow
FedEx, the global shipping giant, has initiated legal proceedings against the Trump administration, demanding a “full refund” of import taxes it paid over the past year. This move follows a Supreme Court decision that deemed a pivotal part of Trump’s tariff policy unconstitutional.
The lawsuit, an 11-page document, was submitted on Monday to the U.S. Court of International Trade. FedEx’s legal action targets the U.S. Customs and Border Protection (CBP), the agency responsible for collecting tariffs and duties on imports.
In the complaint, FedEx’s attorneys stated, “Due to the executive orders highlighted in this lawsuit, Plaintiffs have incurred IEEPA duties paid to the United States, resulting in injury caused by those orders. The relief sought from this Court aims to address these injuries.”
Last Friday, the Supreme Court invalidated most of the tariffs imposed by Trump, ruling 6-3 that the president’s broad application of the International Emergency Economic Powers Act (IEEPA) exceeded his legal authority.
Despite the ruling, the court did not clarify the fate of the $175 billion collected through these tariffs, leading to discussions on the potential return of funds to importers. The matter is now before lower courts, with Treasury Secretary Scott Bessent noting on Sunday that resolving this issue could span “weeks or months.”
In the meantime, other major U.S. companies, such as Costco and Revlon, have launched efforts to recover costs in addition to FedEx, according to The Associated Press.
A message on the FedEx website said tariffs imposed under the IEEPA, which included “reciprocal” tariffs on dozens of countries, would no longer be collected starting Tuesday at midnight.
“While the Supreme Court did not address the issue of refunds, FedEx has taken necessary action to protect the company’s rights as an importer of record to seek duty refunds from U.S. Customs and Border Protection,” the message states. “At this time, however, no refund process has been established by regulators or the courts.’
“We will communicate any relevant information and updates in a timely manner, and we appreciate your patience as we wait for additional guidance and clarity from the U.S. government and the courts,” the company wrote.
A group of Senate Democrats has also introduced legislation that would set a 180-day deadline after enactment for CBP to refund all “unlawfully collected” duties with interest. It would also direct the agency to prioritize small businesses when paying refunds.
“Senate Democrats will continue fighting to rein in Donald Trump’s price-hiking trade and economic policies,” Sen. Ron Wyden (D-Ore.), one of the bill’s lead sponsors, said in a statement. “A crucial first step is helping people who need it most, by putting money back in the pockets of small businesses and manufacturers as soon as possible.”
Several Democratic governors are also pushing for refunds for consumers, including California Gov. Gavin Newsom and Illinois Gov. JB Pritzker.
Pritzker sent an invoice to the Trump administration demanding refunds for more than 5.1 million Illinois households, totaling nearly $8.7 billion.
“The Supreme Court just confirmed what we already know. Trump’s tariffs are illegal. He did it without the support of Congress or the voters, and you paid the price,” the governor said in a short video posted on social platform X.
“Donald Trump now owes you a refund for every dollar of it. America’s working families deserve a refund. Cut the check, Donald,” he added.