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Federal Express Seeks Full Refund of Tariffs Imposed Under IEEPA

Federal Express Corp. and its affiliate FedEx Logistics have filed a lawsuit at the US Court of International Trade seeking a full refund of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The lawsuit marks the first major corporate effort to reclaim duties paid under the regime, which was struck down by the Supreme Court in a 6-3 decision last week.

Background

The Supreme Court's ruling declared that President Donald Trump's reliance on emergency economic powers to impose sweeping tariffs exceeded statutory authority. The majority opinion invalidated the duties, but declined to resolve whether importers who paid more than $170 billion in contested tariffs are entitled to refunds. The issue has been left to lower courts to determine.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Facts

  • FedEx has paid an undisclosed amount under the tariff regime since President Trump extended the measures to most US trading partners last year.
  • The lawsuit has been lodged at the US Court of International Trade, which has exclusive jurisdiction over disputes relating to the IEEPA tariffs.
  • Crowell & Moring, a Washington-based law firm, is providing legal representation for FedEx.
  • Over 1,500 tariff refund lawsuits are currently pending, and more than 300,000 importers had paid the challenged tariffs by the end of 2025.

Legal Risks and Implications

The lawsuit intensifies the legal and financial repercussions of the Supreme Court's ruling on tariffs imposed under the IEEPA. The Justice Department's prior assurances may complicate the refund fight, as government lawyers had previously urged judges to allow tariff collection to continue during appeals, arguing that refund mechanisms were available. However, the administration's subsequent filings have been less definitive, and trade lawyers contend that federal judges are unlikely to ignore those assurances.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Investor Takeaway

Investors should be aware of potential changes in tariffs and their impact on corporate America.

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