FedEx Sues U.S. Government for Refund of Trump-Era Tariffs

Following a Supreme Court ruling last Friday, FedEx has filed a lawsuit against the U.S. Government seeking a “full refund” of tariffs unilaterally imposed by former President Donald Trump. This action marks the first by a major U.S. Company seeking such a refund after the Court deemed the tariffs illegal.

Supreme Court Ruling and IEEPA

The Supreme Court struck down tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA). The Court ruled that the law does not authorize the President to impose tariffs independently without Congressional approval PBS. While the Court determined the tariffs were unlawful, it did not rule on whether importers were entitled to refunds, leaving that decision to lower courts.

FedEx’s Claim

FedEx argues it suffered financial damage by paying the unlawful customs duties on imported goods CNBC. The company is seeking a full refund of the paid tariffs, along with interest and legal fees.

Potential Refund Amount and Other Lawsuits

Economists at the Penn-Wharton Budget Model estimate that over $175 billion in revenue was collected under the IEEPA tariffs, representing approximately 2.5% of the U.S. Budget Fortune.

Other companies, including Costco, had already filed lawsuits seeking refunds before the Supreme Court’s decision. These cases remain pending at the U.S. Court of International Trade in New York, where FedEx also filed its suit CNBC.

Industry Response

DHL declined to comment specifically on the FedEx lawsuit but stated it is closely monitoring legal developments to ensure its customers can assert their rights CNBC.

Financial Impact on FedEx

Last May, FedEx estimated its operating profits would be reduced by $1 billion during the fiscal year ending May 31 due to the tariffs Fortune. FedEx shares experienced a 20% decline following Trump’s initial announcement of the tariffs.