FedEx has filed a lawsuit against the United States government in pursuit of a refund for tariff payments mandated during President Donald Trump’s administration. This legal action comes shortly after the US Supreme Court declared that the president had exceeded his authority in imposing those tariffs. The Court’s ruling emphasized that only Congress holds the power to enforce tariffs during peacetime, thereby invalidating the legal basis of Trump’s tariff strategy.

Details of the Lawsuit

The lawsuit was lodged in the US Court of International Trade on Monday, targeting Customs and Border Protection alongside its commissioner, Rodney Scott, who oversaw the collection of tariffs imposed under the 1977 International Emergency Powers Act (IEEPA). FedEx’s complaint states that the company has “suffered injury” as a result of these tariffs and is seeking a complete refund from the federal government, following the Supreme Court’s recent ruling.

Financial Implications for FedEx

In a statement released in September, FedEx indicated that it anticipates facing a significant financial impact, estimating losses of around $1 billion in 2026 due to these tariffs. Additionally, the discontinuation of tariff exemptions for small packages valued under $800 contributes to this projected loss, according to reports.

Uncertainties Following the Ruling

Despite the pivotal Supreme Court ruling, uncertainties remain for FedEx, global retailers, and American consumers regarding the aftermath of tariff collections that have accumulated over the past year under the IEEPA. The ruling did not clarify the process for refunding the billions collected nor did it provide guidance on how future refunds should be managed.

Industry Response and Additional Legal Moves

Legal experts anticipate that sorting through the complexities surrounding tariffs and the potential refund process may extend for months or even years. In a separate development, Trump has indicated intentions to implement a new 15 percent “global tariff” to succeed the IEEPA tariffs.

FedEx’s Position and Industry Backing

In a statement, FedEx confirmed its proactive stance to safeguard its interests as an importer, stating that it seeks duty refunds from US Customs and Border Protection. However, the company highlighted that to date, regulators and the courts have not established any formal refund mechanism.

Support from Business Organizations

Various industry organizations, including the Chamber of Commerce and the National Retail Federation, are advocating for a prompt refund process to assist businesses affected by the tariff regulations. Notable companies such as Costco, Revlon, and EssilorLuxottica are also pursuing refunds for tariffs they have paid.

Broader Impact of Tariffs

The significant alterations to global trade initiated by Trump included a trade war involving Canada, Mexico, and China, later broadening to encompass a majority of US trade partners, including those under existing free trade agreements. According to the Yale Budget Lab, the US government had collected approximately $142 billion in tariffs under the IEEPA by mid-December 2025, with alternative estimates suggesting the earnings could be as high as $175 billion.

Current Tariff Landscape

Although the IEEPA tariffs have been deemed invalid, certain tariffs are still enforced, such as those designated by Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974. The Yale Budget Lab revealed that consumers currently face an average tariff rate of 9.1 percent, which, while lower than the previous 16.9 percent under IEEPA, remains the highest rate recorded since the conclusion of World War II.

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