FedEx sues US government over Trump tariffs refund battle

FedEx has taken the first major corporate step to recover money collected under Donald Trump’s tariff regime, filing a lawsuit against the US government days after the US supreme court ruled the duties unlawful.

The company is seeking reimbursement for tariffs it paid as an importer of record, though it has not disclosed the amount involved.

The move follows a landmark 6-3 judgment that found the president overstepped his authority by using emergency powers to impose sweeping import levies.

While the court struck down the legal basis for the tariffs, it did not clarify whether businesses are entitled to refunds, leaving that question unresolved.

Legal fight over tariff refunds

The lawsuit was filed on Monday in the US Court of International Trade.

FedEx named the US Customs and Border Protection, its commissioner, Rodney Scott, and the United States of America as defendants.

Customs and Border Protection is responsible for collecting tariffs.

The company is seeking what it described as a full refund of duties paid, but does not specify a dollar figure.

The action makes FedEx the first major corporation to pursue reimbursement from an estimated $175 billion in levies collected under the policy. Other companies are expected to follow with similar claims.

The Supreme Court’s ruling last Friday concluded that Congress retains sole constitutional authority to levy taxes.

It found that the International Emergency Economic Powers Act could not be used during peacetime to impose tariffs in the way the administration had done.

Supreme Court ruling limits executive power

The decision marked the first time the Supreme Court has overruled a Trump policy during his second term.

It challenged the administration’s interpretation of executive authority in trade matters.

However, the majority opinion did not address the issue of refunds.

In a dissenting opinion, Justice Brett Kavanaugh noted that the court had said nothing about whether, or how, the government should return billions of dollars already collected.

He warned that the whole process would result in a mess.

That uncertainty now shifts the debate to lower courts and potentially to Congress, as businesses weigh whether to seek reimbursement through legal channels.

Trump shifts to new tariff measures

Despite the ruling, Trump quickly announced new global import duties under different statutory authorities.

A 10% global tariff was introduced and then increased to 15% less than 24 hours later.

Experts said that the policy direction remained unchanged, even if the legal tools evolved.

They argued the approach provides leverage for US businesses in global trade.

Meanwhile, Senate Democrats have called for refunds from the invalidated tariffs to prioritise small businesses.

They have also urged larger corporations to pass on any returned funds to customers.

In 2025, the tariffs amounted to what the Tax Foundation estimated was a $1,000 tax increase on US households.

The think tank said historical evidence and recent studies show that tariffs function as taxes that raise prices and reduce available quantities of goods and services, leading to lower income, reduced employment, and weaker economic output.

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