FedEx Sues US Government for Refund of Tariffs Deemed Illegal by Supreme Court
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FedEx has sued the US government seeking a refund for tariffs imposed by former President Donald Trump that were declared illegal by the US Supreme Court. This marks the first attempt by a company to seek reimbursement of their share of an estimated $175bn in levies after the high court found Trump had overstepped his authority in issuing the tariffs. The FedEx lawsuit named US Customs and Border Protection, its commissioner, and the US as the defendants, and although the company did not specify an amount in its complaint, it stated that it was seeking a “full refund” for duties paid to the US.
FedEx has filed a lawsuit against the US government asking for a refund of tariffs deemed illegal by the US supreme court. This marks a first attempt by a significant company to recover a portion of an estimated $175bn in levies following the supreme court’s ruling against Trump’s overreach in imposing tariffs.
The FedEx lawsuit lists US Customs and Border Protection (CBP), the agency’s commissioner Rodney Scott, and the United States as defendants. The company sought a “full refund” for duties paid to the US, but didn’t mention a specific sum in its complaint.
“FedEx has taken necessary action to protect its rights as an importer to seek duty refunds from US Customs and Border Protection,” said the company in a statement. Trump used tariffs as a vital part of his economic policy, justifying their imposition on goods from most countries globally using emergency powers law.
The court clarified in a 6-3 ruling that Congress retains the sole authority to tax under the constitution. It also ruled that the International Emergency Economic Powers Act (IEEPA), cited by the administration, can’t override this authority during peacetime.
This was the first time Trump’s policies were overruled in his second term. But the court did not clarify whether businesses are entitled to refunds.
Justice Brett Kavanaugh, in a dissenting opinion, mentioned that refunds would significantly impact the US treasury. Trump responded swiftly, announcing a 10% global tariff which he increased to 15% within 24 hours.
Top US trade negotiator Jamieson Greer said the policy remains unchanged, and it helps US businesses leverage world trade.
Meanwhile, Senate Democrats propose that refunds from illegal tariffs should benefit small businesses. They also urge larger firms to pass any returned amounts to their customers.
According to the Tax Foundation, the tariffs were effectively a $1,000 tax increase for US households in 2025. Tariffs act as taxes that raise prices and reduce available goods, leading to lower income and economic output.
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