FedEx is the first major company to sue for a full tariff refund after Supreme Court leaves payback open-ended

Fortune

by Jacqueline Munis

February 24, 2026

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FedEx has become the first major company to file a lawsuit seeking a full refund of tariffs paid under the International Emergency Economic Powers Act (IEEPA), following the Supreme Court's ruling that struck down President Donald Trump’s tariffs. The company, which reported an expected $1 billion profit hit due to these tariffs last year, is now demanding a "full refund" with interest and compensation for legal costs. This move comes after the Court of International Trade ruled in December that companies must file lawsuits to seek refunds or re-liquidation of tariffs paid under IEEPA. The lawsuit highlights the uncertainty surrounding tariff refunds following the Supreme Court’s decision. While the ruling invalidated Trump’s use of IEEPA for imposing tariffs, it did not address whether importers would receive refunds for the billions paid in illegal tariffs. FedEx’s legal action is expected to set a precedent, with many other companies potentially following suit. Economists estimate that over $175 billion in revenue collected under these tariffs could be at stake. FedEx’s decision reflects the significant financial burden imposed by tariffs on U.S. businesses and consumers. The company’s shares dropped 20% when Trump announced the sweeping tariffs, and its most profitable trade route between the U.S. and China was severely impacted. While the company’s shares have since recovered, its legal action underscores the ongoing challenges businesses face due to regulatory changes and the financial risks associated with tariff policies. The broader implications of this case extend beyond FedEx. Tariffs have disproportionately affected U.S. consumers and businesses, who are estimated to bear 90% of the import tax burden, contrary to Trump’s claims that other countries were footing the bill. This lawsuit not only addresses the immediate financial losses for FedEx but also raises important questions about the fairness and long-term economic impact of tariff policies. As the legal battle unfolds, the Trump administration has indicated it will rely on lower courts to determine how refunds will be handled. The outcome of this case could have far-reaching consequences for businesses that paid tariffs under IEEPA and may influence future trade policy decisions. For now, FedEx’s lawsuit serves as a critical test case for companies seeking relief from what they view as unlawful financial obligations imposed by

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Originally published on Fortune on 2/24/2026