FedEx Sues US Govt for Tariff Refund After Court Ruling. They are seeking a “full refund” of the money the shipping giant paid for tariffs. These tariffs were unilaterally imposed last year by President Donald Trump. The Supreme Court ruled last week that they were illegal.
FedEx’s suit appears to be the first filed by a major American company seeking a refund for tariffs after Friday’s Supreme Court decision.
Other companies filed lawsuits seeking refunds. This occurred before the high court ruled that the tariffs Trump imposed under the International Emergency Economic Powers Act are illegal.
Those suits, whose plaintiffs include retail warehouse club giant Costco, remain pending at the U.S. Court of International Trade in New York, the same court where FedEx filed its lawsuit.
The Supreme Court, in its ruling, emphasized the significance of the Court of International Trade’s role. It stated that the court has “exclusive jurisdiction” over IEEPA tariffs. This provides legal clarity for the audience.
“Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,” Federal Express Corp, and its associated company, FedEx Logistics, say in the new lawsuit.
FedEx’s 11-page complaint names U.S. Customs and Border Protection as defendants
The 11-page complaint names as defendants U.S. Customs and Border Protection, which collects tariffs, its commissioner, Rodney Scott, and the U.S. government.
The suit does not specify how much FedEx has paid in IEEPA tariffs since last year. But the potential financial impact is crucial.
In September, FedEx had announced it anticipated a $1 billion impact on its fiscal year earnings. This was due to U.S. trade policies. Not all of these policies involved IEEPA duties. That dollar amount shows 16% of total earnings for the prior fiscal year.
FedEx expressed confidence in its approach. The company stated, “While the Supreme Court did not handle the issue of refunds, FedEx has taken necessary action to protect the company’s rights as an importer of record. This ensures they can seek duty refunds from U.S. Customs and Border Protection,” which aims to reassure the audience about the company’s proactive measures.
“At this time, however, no refund process has been established by regulators or the courts,” the company said, highlighting the ongoing process and fostering transparency, which helps the audience stay informed about future updates.