Business
The Economist
February 26, 2026
AI-Generated Deep Dive Summary
Donald Trump’s new 10% global tariff has been implemented, marking another significant move in his ongoing trade strategy. The tariffs were imposed under a statute from 1974 after the Supreme Court invalidated his previous tariff system. However, the court did not address whether refunds should be issued for tariffs collected during the period when the policy was deemed unconstitutional. This unanswered question has left businesses uncertain about their financial obligations and potential refunds.
The legal battle over these tariffs is already heating up, with FedEx becoming the first major company to sue the government for a full refund of duties it paid under the disallowed policy. The case highlights the complexities of navigating trade law and could set a precedent for other companies facing similar issues. Given the slow and intricate nature of the U.S. legal system, this dispute is likely to drag on for years.
For businesses, particularly those involved in international trade, this situation underscores the risks of shifting trade policies and the potential financial burden of tariffs that may or may not be refunded. The outcome of FedEx’s lawsuit could have far-reaching implications for other companies caught in similar situations, making it a critical case to watch in the world of business and law.
The broader context of Trump’s trade policies and their impact on global markets adds another layer of complexity. His approach to tariffs has already caused significant disruptions, with both supporters and critics weighing in on the potential economic benefits and drawbacks. As the legal battles over these tariffs continue, businesses must remain vigilant about how these developments could affect their operations and bottom lines.
In a world where trade policies are increasingly unpredictable, companies like FedEx are forced to navigate uncharted waters. The uncertainty surrounding refunds and future trade decisions creates a challenging environment for businesses trying to plan for long-term growth. This case not only highlights the importance of understanding legal nuances but also underscores the need for businesses to adapt to rapidly
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Originally published on The Economist on 2/26/2026