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FedEx Sues for Full Refund of Trump-Era Tariffs After Supreme Court Ruling

FedEx has filed a lawsuit seeking a full refund of tariffs imposed under Trump's emergency powers, following a Supreme Court ruling that deemed the tariffs unlawful. Meanwhile, legislation and numerous lawsuits aim to secure refunds for affected businesses.

·3 min read
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FedEx Files Lawsuit Seeking Refund of Trump-Era Tariffs

Global transportation and postal company FedEx has initiated legal action seeking a "full refund" for tariffs imposed under former US President Donald Trump's emergency measures.

Last April, Trump implemented increased tariffs on imports from most countries under the International Emergency Economic Powers Act (IEEPA). However, the US Supreme Court ruled last week that this legislation did not authorize the president to levy such import taxes.

This ruling has opened the door for companies to pursue reimbursement of additional import duties paid since the tariffs' introduction last year.

"Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States," FedEx stated in its lawsuit.

FedEx did not specify the amount of the refund it is pursuing. The lawsuit names US Customs and Border Protection (CBP), its commissioner Rodney Scott, and the United States government as defendants.

In its filing with the US Court of International Trade, FedEx asserted its responsibility for paying the tariffs and is seeking compensation accordingly.

In a statement issued Monday evening, FedEx said it "has taken necessary action to protect the company's rights as an importer of record to seek duty refunds" from CBP following the Supreme Court's decision.

The BBC has reached out to CBP for comment.

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Legislative Efforts to Mandate Tariff Refunds

On Monday, 22 US Senators, all Democrats, introduced legislation mandating the Trump administration to fully refund all revenue collected from the tariffs, including interest, within 180 days.

The proposed law requires CBP, which would manage the reimbursements, to prioritize small businesses.

It is estimated that the Trump administration collected at least an additional $130 billion (£97 billion) in revenue from tariffs imposed on most goods imported to the US under the IEEPA.

While the Supreme Court's ruling declared the IEEPA tariffs unlawful, it did not provide guidance on how to return the funds to those who paid the taxes.

Following the decision, both Trump and Treasury Secretary Scott Bessent indicated that the refund issue could result in prolonged legal disputes.

Widespread Legal Challenges from Businesses

In the weeks leading up to the ruling's release on Friday, hundreds of companies, including cosmetics firm Revlon, aluminium producer Alcoa, and food importers such as tuna brand Bumble Bee, filed lawsuits contesting the tariffs to position themselves for refunds.

Costco was among the companies that preemptively sued the Trump administration last year, arguing in their lawsuit that "The text of IEEPA does not use the word 'tariff' or any term of equivalent meaning."

New Tariffs Imposed Under Alternative Legislation

On Friday, Trump signed a proclamation invoking a different statute, Section 122 of the Trade Act of 1974, to impose a new 10% temporary tariff on goods from all countries. The following day, he announced plans to raise these tariffs to 15%.

This article was sourced from bbc

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