FedEx Sues U.S. Government Over Tariff Refunds
FedEx has initiated a lawsuit against the U.S. government, aiming for a “full refund” of tariffs it paid. This action follows last week’s landmark Supreme Court decision declaring significant import taxes imposed by President Trump as illegal.
This lawsuit seems to be the first of its kind from a prominent American company since the court found that Trump had exceeded his executive powers and invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
In an 11-page complaint lodged Monday in the U.S. Court of International Trade in New York, FedEx and its logistics arm stated their intention to seek a refund for all IEEPA duties paid. They noted, “plaintiffs are seeking from defendants a full refund of all IEEPA duties paid by plaintiffs to the United States.”
The lawsuit names the U.S. government but does not clarify how much FedEx has actually paid in tariffs.
After the news broke, FedEx’s stock saw a slight rise of 0.7% on Tuesday morning. As for a response, neither the White House nor U.S. Customs and Border Protection immediately addressed queries from the press.
Prior to the Supreme Court’s ruling, several companies, including Costco and Revlon, had already filed for refunds on tariffs, although their cases remain pending in the same court.
While FedEx hasn’t disclosed the total amount it has paid in tariffs, the company cautioned back in September that U.S. trade policies, particularly IEEPA tariffs, could negatively affect its revenue by around $1 billion, equating to roughly 16% of its total revenue for fiscal 2025.
The Supreme Court concluded that the U.S. Court of International Trade has “exclusive jurisdiction” over IEEPA levies, which might play a crucial role in FedEx’s case.
In a statement, FedEx asserted, “While the Supreme Court did not address the issue of refunds, it took the necessary steps to protect the company’s right as an importer of record to seek refunds of duties from U.S. Customs and Border Protection.” They also added that they would provide relevant updates in due course.
Ultimately, FedEx is looking for a complete refund of the customs duties it paid, along with attorney fees.
