Shipping company FedEx has sued the US government, asking for a “full refund” of the money it paid under emergency tariffs introduced by President Donald Trump, CNBC reported. The tariffs were recently ruled illegal by the Supreme Court of the United States. The lawsuit was filed on Monday in the US Court of International Trade, the same court the Supreme Court said has “exclusive jurisdiction” over the Trump tariffs. In simple words, this is the only court that can handle cases related to those tariffs.
FedEx appears to be the first major American company to file a lawsuit seeking money back after the court’s decision.
FedEx sues US government over ‘illegal’ tariffs
Last Friday, the Supreme Court ruled that the tariffs imposed under the International Emergency Economic Powers Act were not lawful. The court also made it clear that the US Court of International Trade has “exclusive jurisdiction” over cases involving these tariffs. In simple terms, that court is the only one that can handle such disputes.
In its 11-page complaint, Federal Express Corp and its related company, FedEx Logistics, said: “Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States.”
According to CNBC, the lawsuit names the US Customs and Border Protection, which collects tariffs, its commissioner Rodney Scott, and the US government as defendants. The case has been filed in the same New York-based trade court that is already handling similar cases.
Several companies had already sued the Trump administration before the Supreme Court ruling. Among them were retail giant Costco, cosmetics company Revlon, and a Japanese tyre maker, also named Revlon.
How much money is involved?
The new lawsuit does not mention the exact amount FedEx has paid in tariffs under the emergency powers law. However, in September, the company had warned that US trade policies could hurt its earnings by about $1 billion for the fiscal year. Not all of that amount was linked to these specific tariffs. Still, that figure equals about 16% of the company’s total earnings from the previous fiscal year.
In a note posted on its website, FedEx said: “While the Supreme Court did not address the issue of refunds, FedEx has taken necessary action to protect the company’s rights as an importer of record to seek duty refunds from US Customs and Border Protection.” The company added that there is still no official process in place for refunds.
“At this time, however, no refund process has been established by regulators or the courts,” FedEx said. “We will communicate any relevant information and updates in a timely manner, and we appreciate your patience as we wait for additional guidance and clarity from the U.S. government and the courts.”
After the court’s decision, Trump announced a new 15% universal tariff under a different legal route. But this time, he will need approval from Congress if he wants the tariffs to continue beyond 150 days.