FedEx filed a lawsuit against the U.S. Government on Wednesday, seeking a full refund of tariffs paid during the Trump administration, just days after the Supreme Court curtailed a key legal defense used to justify the levies. The suit, filed in the U.S. Court of Federal Claims, argues that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are now unlawful following the high court’s ruling.
The legal challenge centers on tariffs enacted on goods imported from China and other countries, initiated under the Trump administration as part of a broader trade strategy. The Supreme Court’s decision, delivered last week, limited the scope of presidential power under IEEPA, a law typically used to address national security threats. The court found that IEEPA does not authorize the president to impose tariffs unrelated to a specific emergency.
According to court documents, FedEx is pursuing “a full refund” of all tariffs paid, along with interest. The company contends that it was forced to absorb significant costs as a result of the tariffs, impacting its business operations and financial performance. The Latest York Times reported that the lawsuit seeks to recover funds paid on goods shipped internationally.
The Supreme Court ruling stemmed from a case brought by Trans Pacific Container Line Co., which challenged tariffs imposed on goods shipped from China. While the ruling didn’t directly address FedEx’s situation, it removed a critical legal underpinning for the Trump-era tariffs, opening the door for companies like FedEx to seek reimbursement.
Legal experts anticipate a wave of similar lawsuits from other businesses that paid tariffs during the relevant period. The potential financial implications for the U.S. Government could be substantial, depending on the number of companies that file claims and the amounts involved. Fox Business reported that thousands of companies are expected to pursue refunds.
The Biden administration has not yet publicly commented on the FedEx lawsuit or the anticipated influx of similar claims. The Department of Justice has not responded to requests for comment regarding its legal strategy in defending against the suits. The government’s position remains unclear as it assesses the scope of the Supreme Court’s ruling and its potential impact on existing trade policies.
A hearing date in the FedEx case has not yet been scheduled. The U.S. Court of Federal Claims will now consider the merits of FedEx’s claim in light of the Supreme Court’s recent decision. The outcome of the case will likely set a precedent for how other companies can pursue tariff refunds.
