FedEx Launches the "First Shot" in Tax Refunds: Suing the Trump Administration to Recover Illegal Tariffs

FedEx has officially filed a lawsuit against the U.S. government, demanding the return of tariffs imposed under emergency powers by the Trump administration. This is the first major U.S. company to take legal action seeking compensation since the Supreme Court ruled such comprehensive tariffs illegal.

The company filed a complaint on Monday with the U.S. International Trade Court, explicitly requesting the government to refund tariffs imposed under the International Emergency Economic Powers Act (IEEPA). FedEx argued in the complaint that, according to the Supreme Court’s ruling last week, the president does not have the authority to impose such tariffs using emergency powers, and therefore, the company seeks a full refund of all IEEPA tariffs paid to the U.S.

This legal action touches on a key issue in the current trade dispute. Although the Supreme Court’s decision struck down a major policy pillar of President Trump’s tenure, it did not clarify whether the government must refund the related tariff revenues. Experts estimate that the tariff revenues involved over the past year have at least reached $160 billion. Currently, numerous cases filed by taxpayers seeking refunds have flooded into the International Trade Court, which is expected to handle the refund proceedings.

The Trump administration has shown a tough stance on the refund issue. U.S. Treasury Secretary Janet Yellen hinted that refunds are unlikely to be issued in the short term and warned that the process could face a lengthy legal battle. Meanwhile, as a countermeasure, Washington has begun implementing a new global tariff policy to replace the tariffs deemed illegal under IEEPA.

Seeking Legal Relief and Full Refund

According to the Financial Times, FedEx emphasized in its complaint that this lawsuit is a “necessary action” taken as a registered importer to protect the company’s rights. The company stated, “Supporting our customers as they navigate regulatory changes remains our top priority.” FedEx cited the Supreme Court’s ruling on the illegality of IEEPA tariffs to seek reimbursement for all related taxes paid to the government.

Last week’s Supreme Court decision was a significant setback for the White House, as the court ruled that the president lacked authority to impose tariffs using emergency powers. However, the court left the question of how to handle the large sums already collected to lower courts. As of now, U.S. Customs and Border Protection (CBP) and the White House have not immediately responded to requests for comment.

Treasury Department Signals Refunds Are Far Off

Regarding the Supreme Court’s lack of a ruling on refunds, Trump called it “crazy” last Friday. In response, Treasury Secretary Janet Yellen expressed a similar stance, stating at an event in Dallas that refunds are unlikely to be paid soon.

Yellen said: “My feeling is that this could be delayed for weeks, months, or even years.” She further added, “I have a feeling the American people won’t see that money.”** This indicates that the government is prepared for a long-term battle over the refund issue.

Rapid Implementation of New Tariff Policies

Shortly after the Supreme Court’s ruling, the Trump administration quickly adjusted its tariff strategy. Last Friday, Trump announced replacing the IEEPA tariffs with a 10% general tariff, and on Saturday, he announced raising the rate to 15%.

According to CCTV News, the U.S. White House recently announced a 10% ad valorem import tariff on goods imported into the U.S., effective from 12:01 a.m. Eastern Time on February 24, lasting 150 days. However, the White House has signaled that it is preparing to issue an official order to raise the global tariff baseline to 15%, though the implementation timetable has not yet been finalized.

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