FedEx Corporation has filed a lawsuit against the United States government seeking a refund of tariffs it paid under former President Donald Trump’s trade policies, following a landmark Supreme Court ruling that declared those tariffs unlawful. The case marks a significant escalation in the legal and financial fallout from the court’s decision and could open the door for billions of dollars in refund claims from major American companies.
The lawsuit was filed in the US Court of International Trade and names US Customs and Border Protection along with federal officials as defendants. FedEx argues that the tariffs it paid were collected under executive authority that the Supreme Court has now ruled unconstitutional, and therefore the government is obligated to return those funds.
Supreme Court Decision That Changed the Landscape
Earlier this month, the Supreme Court ruled that the Trump administration exceeded its authority when it imposed broad tariffs on imported goods by declaring a national economic emergency. The tariffs were enacted under the International Emergency Economic Powers Act, a law traditionally used to impose sanctions or restrict financial transactions during crises.
In a six to three decision, the court held that the statute did not grant the president power to impose sweeping import taxes without congressional approval. The majority opinion emphasized that the authority to levy tariffs rests with Congress and cannot be transferred through an emergency declaration unless clearly authorized by law.
The ruling invalidated a wide range of tariffs that had been applied to imports from multiple countries and affected nearly every sector of the US economy. According to government estimates, the tariffs generated more than 175 billion dollars in revenue during their enforcement period.
Why FedEx Is Suing
FedEx acted as the importer of record for many shipments subject to the now invalidated tariffs. As a result, the company paid tariff charges directly to the federal government, even though those costs were often passed through supply chains.
In its lawsuit, FedEx contends that because the legal foundation for the tariffs has been struck down, the government no longer has a right to retain the funds collected. The company is seeking a full refund of the tariffs it paid, though it has not publicly disclosed the exact amount involved.
Legal experts note that FedEx’s case is significant because it is one of the first major corporations to formally pursue repayment after the Supreme Court ruling. The outcome could establish a framework for how similar claims are handled in the future.
Other Companies Preparing Claims
FedEx is not alone in challenging the tariff collections. Retail giant Costco and cosmetics company Revlon have also filed lawsuits seeking refunds. Industry analysts expect many more corporations to follow, particularly those that imported large volumes of goods during the tariff period.
Several companies had already initiated legal action before the Supreme Court ruling, arguing that the tariffs were improperly imposed. The recent decision has strengthened those claims and accelerated efforts to recover losses.
If courts ultimately side with companies seeking refunds, the federal government could face unprecedented financial exposure. Analysts warn that returning even a portion of the collected tariffs could significantly impact federal revenue projections.
Uncertainty Over the Refund Process
Despite the Supreme Court ruling, there is currently no established process for issuing refunds. US Customs and Border Protection has not announced how claims will be evaluated or whether refunds would be automatic or require individual litigation.
Legal scholars suggest that Congress may need to intervene to create a standardized mechanism for handling refund requests. Without legislative guidance, courts may be forced to decide claims on a case by case basis, potentially leading to years of litigation.
Another unresolved issue is whether companies that passed tariff costs on to consumers should still be eligible for full refunds. Economists argue that determining who ultimately bore the cost of the tariffs will be extremely difficult.
Broader Implications for Trade Policy
The FedEx lawsuit highlights broader questions about executive authority and trade policy in the United States. The Supreme Court decision limits the ability of future presidents to impose large scale tariffs without explicit approval from Congress.
Supporters of the ruling argue that it restores constitutional balance and provides greater certainty for businesses. Critics warn that it could reduce flexibility in responding to economic threats.
Former President Trump has indicated that he may pursue new tariffs under different legal provisions, including trade laws that allow temporary measures during investigations. However, any future actions are expected to face close scrutiny from courts and lawmakers.
What Happens Next
The Court of International Trade will first determine whether FedEx has standing to seek a refund and whether the government is legally obligated to return the funds. Appeals are likely regardless of the initial outcome, meaning a final resolution could take years.
Meanwhile, corporations across industries are reassessing their legal strategies and monitoring developments closely. The case is expected to shape the future of tariff enforcement, executive power, and corporate rights in the United States.
For businesses, investors, and policymakers, the FedEx lawsuit represents a critical test of how far the consequences of the Supreme Court ruling will extend and whether the government can be compelled to repay one of the largest tariff collections in US history
