First main firm breaks ranks and sues US demanding ‘full refund’ of Trump emergency tariffs
Global shipping giant FedEx has gone to court demanding its money back after President Donald Trump’s emergency tariffs were ruled illegal.
The company filed its lawsuit on Monday in the Court of International Trade, seeking a full refund of the duties it paid under Trump’s tariff plan.
Last week, the Supreme Court struck down the tariffs, ruling that Trump did not have the authority to impose sweeping global duties under the International Emergency Economic Powers Act, known as IEEPA.
‘Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,’ the company said in the lawsuit.
FedEx argues it was forced to pay tariffs that the nation’s highest court has now declared unlawful – and it wants every dollar returned.
The 11-page complaint does not spell out how much FedEx has paid in IEEPA tariffs since they were first imposed.
The case appears to be the first lawsuit by a major US corporation filed after the Supreme Court’s decision specifically asking for a refund.
It could open the floodgates to other big companies affected by tariffs, from retailers like Walmart and Costco to car firms like Dodge-maker Stellantis. The lawsuit could set the stage for a broader wave of refund claims from other large importers who also paid tariffs under the IEEPA authority.
A FedEx delivery truck makes its rounds in Florida in 2019. The shipping giant on Monday filed a lawsuit seeking a full refund of Trump-era emergency tariffs struck down by the Supreme Court
Raj Subramaniam, CEO of FedEx, whose company has filed suit seeking a full refund of emergency tariffs struck down by the Supreme Court
An Amazon package sits on a customer’s doorstep, as the e-commerce giant expands its delivery partnerships with FedEx and other carriers
Stocks slid sharply today amid fresh tariff uncertainty, sending the Dow plunging and rattling retirement accounts
FedEx is particularly exposed because it moves goods across borders every day.
Tariffs act like a tax on imports, meaning companies either absorb the extra cost or pass it on to customers. For a global transportation firm, those duties can quickly add up.
The legal fight comes as FedEx deepens its business ties with Amazon. The two companies recently signed a multi-year deal under which FedEx will deliver select residential packages for Amazon, including large items.
FedEx joins other third-party partners such as United Parcel Service and the United States Postal Service, working alongside Amazon’s own in-house delivery network.
The partnership is significant. FedEx’s previous US ground contract with Amazon ended in 2019.
The new deal highlights FedEx’s central role in US shipping – and the scale of goods potentially affected by tariffs.
Even after the Supreme Court ruling, Trump has signaled he may pursue new duties under other trade laws.
For example, on Saturday, he vowed to raise global tariffs to 15 percent.
President Donald Trump vowed to raise global tariffs to 15 percent , just days after the Supreme Court on Friday struck down his earlier ‘reciprocal’ tariff plan
Today, in a fiery post on Truth Social, Trump warned that any country trying to ‘play games’ with the ruling would be hit with even higher duties.
He said the new 15 percent worldwide tariff would take effect immediately, though it remained unclear whether formal paperwork had been completed.
The tariff uncertainty is rattling markets.
Earlier today, the Dow Jones plunged 822 points, or 1.7 percent. The S&P 500 had slumped 1 percent – taking it negative for the year – while the Nasdaq 1.1 fell percent.
The sell-off came after President Donald Trump vowed to raise global tariffs to 15 percent, despite the Supreme Court on Friday struck down his earlier ‘reciprocal’ tariff plan.
