Friday’s Supreme Court decision to invalidate President Donald Trump’s tariffs enacted under the International Emergency Economic Powers Act (IEEPA) left a significant question unanswered: would importers be reimbursed for the billions of dollars they paid in illegal tariffs? One corporation is now seeking a resolution.
FedEx is taking legal action against the Trump administration to obtain a full refund of the tariffs, becoming the first major corporation to file such a lawsuit following the ruling.
“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 stated in the complaint submitted on Monday to the U.S. Court of International Trade.
The White House did not provide an immediate response to a request for comment.
In May of last year, the company projected that its operating profits would be reduced by $1 billion in the current fiscal year, which concludes on May 31. FedEx is requesting a “full refund” plus “interest as provided by law.” The company is also seeking coverage for its attorneys’ fees and other legal costs, in addition to “further relief as this Court deems proper.”
The lawsuit was anticipated, as the Court of International Trade decided in December that companies must file suit to pursue reliquidation and a refund. Many more cases are predicted, with over $175 billion in revenue collected from the IEEPA tariffs potentially being refunded.
Tariffs have placed a significant burden on U.S. businesses and consumers. A study by the New York Fed found that U.S. consumers and companies have borne 90% of the cost of President Donald Trump’s import taxes, contradicting his assertions that other countries were paying.
The tariffs were first imposed shortly after Liberation Day, when Trump announced broad tariffs using IEEPA authority. The company’s most profitable trade route, between the U.S. and China, “deteriorated sharply” after the announcement, Chief Customer Officer Brie Carere noted in a June earnings call. The route has since recovered from the initial impact, with volumes increasing more than 50% since April.
“Supporting our customers as they navigate regulatory changes remains our priority,” FedEx spokesperson Isabel Rollison said in a statement. “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 following the U.S. Supreme Court’s ruling that the tariffs issued under the International Emergency Economic Powers Act (IEEPA) are unlawful.”
Refunds are possible, administration officials say
Officials from the Trump administration had previously suggested that refunds would be issued if the Supreme Court overturned the tariffs. After companies including Reebok preemptively sued the administration for refunds last year, the Justice Department conceded that the government would reimburse the plaintiffs if the tariffs were ruled unlawful, using this as part of its argument against granting the plaintiffs emergency relief.
Recently, the administration has stated it will await guidance from lower courts regarding refunds. Speaking over the weekend, U.S. Trade Representative Jamieson Greer said: “[The courts] created the situation, and we’ll follow whatever they say to do.”
Treasury Secretary Scott Bessent also suggested that refunds would be probable if the Supreme Court ruled against the administration. “I’m not going to get out ahead of the court,” he said on Sunday. “We will follow the court’s direction. But as I said, that could be weeks or months away. That decision was not rendered on Friday.”