FedEx to Refund Customs Duty Payments After Supreme Court Ruling
FedEx announced on Thursday that it will reimburse any tariff refunds it receives to the customers who initially paid them. This decision stems from the company seeking compensation from the federal government for illegal duties it had paid.
The shipping giant stated that it plans to return these tariff refunds to its customers and shippers affected by the tariffs. This move comes in light of a Supreme Court decision last week that deemed key elements of President Trump’s tariffs—imposed under the International Emergency Economic Powers Act (IEEPA)—as illegal.
“We’re focused on helping our customers navigate the recent regulatory shifts and are taking steps to ensure their right to IEEPA fee refunds,” FedEx communicated in its statement.
“Our aim is straightforward: if we receive refunds, we’ll first return the amounts to the shippers and consumers who incurred these charges. The timeline and exact procedure for issuing refunds will depend on additional guidance from the government and the courts,” the statement elaborated.
FedEx Seeks Full Tariff Refund Following Supreme Court’s IEEPA Ruling
FedEx asserted its commitment to transparency, promising to update customers as it gets more instructions from the U.S. government and legal entities. For those interested in fee-related information, the company has resources available on its website.
The Supreme Court found that the law President Trump used to enforce these import taxes did not grant him authority to impose tariffs, thus ruling them unconstitutional and invalidating the IEEPA tariffs. However, this ruling does not impact tariffs imposed through other legal avenues by the Trump administration. Reports suggest that the White House is considering new tariffs to offset the revenues lost from IEEPA tariffs, and that the Treasury is equipped to handle potential rebates, though it may take some time.
Are Refunds on the Way After the Supreme Court’s IEEPA Decision?
Over the enforcement period of IEEPA tariffs, the U.S. government collected more than $150 billion, and that revenue may now face regulatory scrutiny. Various estimates indicate that customs duty refunds could range as high as $175 billion according to the Penn Wharton Budget Model and anywhere between $150 billion and $200 billion as per JPMorgan’s analysis.
The case has been sent back to a lower court following the Supreme Court’s ruling regarding the invalidation of IEEPA tariffs, and there’s potential for the courts and the government to reach an agreement about how refunds will be distributed.
In the meantime, tariff payers—including FedEx and over 1,000 other companies—can file lawsuits in the U.S. international trade court to seek refunds, or they can appeal through U.S. Customs and Border Protection, which manages customs duties for the Department of Homeland Security and forwards them to the Treasury Department.
How Should Businesses Navigate Duty Refunds?
Recent research conducted by the Federal Reserve Bank of New York shows that as of November 2025, U.S. businesses and consumers are bearing 86% of the tariff burden, while foreign exporters take on the remaining 14%. Researchers observed a slight decrease from earlier in the year, when U.S. businesses and consumers paid 94% of the costs in January to August, down to 92% in September and October.
These findings are in line with a bipartisan report from the Congressional Budget Office (CBO), which indicates that foreign exporters absorb roughly 5% of the tariff costs, while an overwhelming 95% falls on U.S. businesses and consumers.
