edEx became the first major corporation to sue the U.S. government for a “full refund” of tariffs that were recently declared illegal by the Supreme Court.
The lawsuit follows a landmark 6-3 Supreme Court ruling on Friday, February 20, which determined that President Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs without congressional approval.
The Lawsuit Details
FedEx filed the 11-page complaint in the U.S. Court of International Trade in New York, naming U.S. Customs and Border Protection (CBP) and its commissioner, Rodney Scott, as defendants.
- The Demand: FedEx is seeking a total reimbursement of all duties paid under the IEEPA regime, plus interest and legal fees.
- The Financial Hit: While the lawsuit doesn’t name a specific dollar amount, FedEx executives previously warned that these trade policies could reduce company earnings by approximately $1 billion for the 2026 fiscal year.
- The “Mess” Warning: In his dissenting opinion last Friday, Justice Brett Kavanaugh predicted that a repayment process for the estimated $170–$180 billion collected from importers would be a “mess.”
A Wave of Corporate Litigation
FedEx’s move is expected to open the floodgates for thousands of other companies.
- Prior Filings: Large retailers like Costco, along with firms like Revlon, Alcoa, and Bumble Bee Foods, had already filed “protective” lawsuits before the Supreme Court ruling.
- Potential Total: Economists at the Penn-Wharton Budget Model estimate that more than $175 billion in tariff collections are now subject to potential refund claims.
Trump’s Counter-Move: The 15% Pivot
President Trump has signaled he will not make the refund process easy, stating, “I guess it has to get litigated for the next two years.” Simultaneously, he has moved to bypass the court’s ruling by switching legal justifications. At 12:01 AM today (Tuesday, Feb 24), a new 15% global tariff went into effect under Section 122 of the Trade Act of 1974.+1
- The Loophole: This law allows the President to impose duties for 150 days to address balance-of-payment deficits.
- The Catch: After 150 days, Trump will be legally required to seek Congressional approval to keep the 15% rate in place, setting up a major political showdown in the summer of 2026.
