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FedEx Seeks Refund After Supreme Court Rejects Trump Tariffs
Carrier Joins Others in Effort to Reclaim Significant Tariff Outlays
Key Takeaways:
- FedEx is seeking a full refund on tariffs it paid under Trump鈥檚 emergency鈥憄owers policy that the Supreme Court later ruled unconstitutional.
- Other major companies, including Costco and Revlon, have launched similar efforts to recover costs after the ruling invalidated the wide鈥憆eaching tariffs.
- The National Retail Federation said the decision provides clarity for importers and urged a smooth refund process to help businesses reinvest in their operations.
FedEx is suing the U.S. government, requesting a full refund on what it paid for tariffs set by President Donald Trump last year after the听Supreme Court听ruled that the tariffs are illegal.
FedEx said in a filing with the U.S. Court of International Trade that it has 鈥渟uffered injury鈥 from having to pay the tariffs and that the relief it's seeking from the court would redress those injuries.
Other companies have already launched efforts to recoup costs from the illegal tariffs, including large U.S. corporations like Costco and Revlon.
RELATED:听Tariff Ruling Kicks Off Messy Fight Over $170B in Refunds
The National Retail Federation said in a statement on Feb. 20 that the Supreme Court's ruling provided certainty for U.S. businesses and manufacturers.
鈥淲e urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,鈥 it said. "The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.鈥
The Supreme Court听struck down President Donald Trump鈥檚听far-reaching global tariffs听on Feb. 20. Trump said he was 鈥渁bsolutely ashamed鈥 of some justices who ruled 6-3 against him, calling them 鈥渄isloyal to our Constitution鈥 and 鈥渓apdogs.鈥 At one point he even raised the specter of foreign influence without citing any evidence.
RELATED:听Trump Has Other Tariff Options After Supreme Court Rebuff
The court鈥檚 ruling found tariffs that Trump imposed under an emergency powers law were unconstitutional, including the sweeping 鈥渞eciprocal鈥 tariffs he levied on nearly every other country.
The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December,听听shows. The impact over the next decade has been estimated at some $3 trillion.
Trump has vowed to collect tariffs through other means. He reached for a stopgap option immediately after his defeat Feb. 20 at the Supreme Court: Section 122 of the Trade Act of 1974 allows the president to impose tariffs of up to 15% for up to 150 days. But any extension beyond 150 days must be approved by听a Congress likely to balk at passing a tax increase听as November鈥檚 midterm elections loom.
FedEx ranks No. 2听on the Transport Topics Top 100 list of the听largest for-hire carriers in North America, No. 3 on the TT Top 50 list of the听largest global freight carriers听补苍诲听No. 43听on the TT Top 100 list of the听largest logistics companies in North America.
