Tariff Clash: FedEx Demands Full Refund
FedEx files a lawsuit seeking a full refund after the Supreme Court ruling struck down Trump tariffs, challenging US Customs over billions in duties.
FedEx sued the US government on Monday, seeking a refund of tariffs imposed by Donald Trump, which the US Supreme Court last week deemed illegal.
This case is the first attempt by a major company to obtain a refund of its share of the approximately $175 billion in taxes, after the Supreme Court found that Trump exceeded his authority in issuing the tariffs. Other companies are expected to follow suit.
FedEx's case names US Customs and Border Protection (CBP), which collects the tariffs; the agency's Commissioner, Rodney Scott; and the United States of America as defendants. The case was filed in the US Court of International Trade. The company did not specify the amount in its complaint, but said it was seeking a "full refund" for the duties paid to the US.
"Although the Supreme Court did not address the refund issue, FedEx has taken the necessary steps to protect the company's rights as an importer of record to seek duty refunds from US Customs and Border Protection," the company said in a written statement. Trump has made tariffs a key part of his economic policy during his second term, using a new interpretation of the Emergency Powers Act to impose import duties on goods from nearly every country in the world.
In a 6-3 decision last Friday, the court clarified that Congress has the sole authority to impose taxes under the Constitution, and that the International Emergency Economic Powers Act (IEEPA), as cited by the administration, cannot be used to abrogate that authority in peacetime.
This decision marks the first time the Supreme Court has struck down Trump's second-term policies, undermining his claims of executive authority and his ability to overturn US trade policy. However, it did not clarify whether businesses would be entitled to refunds.
In his separate opinion, Justice Brett Kavanaugh addressed the issue, claiming: “The Court today says nothing about whether, and if so, how, the government should return the billions of dollars it collected from importers.” He further stated that “refunding billions of dollars would have a significant impact on the US Treasury.”
Following the decision, the President immediately and sharply rebuked the Supreme Court, claiming it would not slow him down. Trump said he would proceed with new global tariffs issued under separate laws. He then announced a 10% global tariff, which he increased to 15% less than 24 hours later.
Software Services
 |
Launch your own casino platform today — get started now |
Top US trade negotiator Jamieson Greer said on politics show, This Week, “The policy hasn't changed. The legal mechanisms implementing it may change, but the policy hasn't changed.” He argued that this gives US businesses a “huge advantage” in world trade.
Meanwhile, a group of Senate Democrats has demanded that small businesses receive refunds from illegally collected tariffs, and pressure large companies to return any money they receive to their customers.
According to an estimate by the Tax Foundation, a non-profit conservative think tank, tariffs would increase taxes on US households by $1,000 in 2025.
“Past evidence and recent studies show that tariffs are taxes that raise prices and reduce the quantity of goods and services available to US businesses and consumers, leading to lower incomes, lower employment, and lower economic output,” the organization wrote in its analysis.
Thank you for reading this content.
Thank you for reading this content.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
