FedEx sues US government for tariff refund after Supreme Court ruling
Al Jazeera
February 24, 2026
AI-Generated Deep Dive Summary
FedEx has filed a lawsuit against the US government seeking a refund of tariffs paid under former President Donald Trump’s trade policies, which were recently deemed unconstitutional by the Supreme Court. The logistics giant is among several companies and industry groups pushing for refunds following the court’s ruling that only Congress, not the president, has the authority to impose tariffs during peacetime. While the landmark decision invalidates the legal basis for Trump’s tariff scheme, the process for refunding billions in collected tariffs remains unclear, leaving uncertainty for businesses and consumers alike.
The suit was filed in the US Court of International Trade, targeting Customs and Border Protection (CBP) and its commissioner, Rodney Scott, who were responsible for enforcing the tariffs under the 1977 International Emergency Powers Act (IEEPA). FedEx claims it has been “injured” by the tariffs and is seeking a full refund, citing projected losses of up to $1 billion by 2026. The company’s legal action comes as other major retailers, including Costco, Revlon, and EssilorLuxottica, also pursue refunds through various channels.
The Supreme Court’s decision has raised questions about the future of US trade policy and the refund process for tariffs collected under IEEPA. Experts estimate that billions of dollars in tariffs were imposed during Trump’s presidency, with some projections reaching as high as $175 billion. While the IEEPA tariffs have been invalidated, other sector-specific tariffs remain in place, leaving consumers to face an average tariff rate of 9.1 percent, the highest since World War II.
The situation highlights the ongoing impact of Trump’s trade policies on global businesses and US consumers. As the courts work to untangle the complex web of tariffs and establish a refund process, companies like FedEx are left waiting for clarity. Meanwhile, industry groups such as the Chamber of Commerce and the National Retail Federation continue to advocate for swift action, emphasizing the importance of resolving this issue for both businesses and the broader economy.
This case underscores the broader implications of the Supreme Court’s ruling on US trade law and its potential long-term effects on international trade relations. As the process unfolds, the outcome could shape future trade policies and set precedents for how tariffs are imposed and enforced in peacetime.
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Originally published on Al Jazeera on 2/24/2026