FedEx became first major company to seek tariff refunds after Supreme Court ruling
Supreme Court ruled Trump exceeded authority using IEEPA to impose tariffs
FedEx expects $1 billion profit hit in 2025 due to tariff policies
Other companies like Costco and Revlon had also sued before the ruling
📖 Full Retelling
Shipping giant FedEx filed a lawsuit against the Trump administration on Monday, February 23, 2026, seeking a full refund of tariff payments made under policies that were recently ruled illegal by the Supreme Court for exceeding presidential authority. The complaint, filed in the U.S. Court of International Trade, marks the first major corporate action seeking reimbursement since the high court's landmark decision last week that President Trump had overstepped his powers when using the International Economic Emergency Powers Act (IEEPA) to impose sweeping tariffs on most of the world. FedEx specifically requested that Customs and Border Protection refund all duties paid last year under the federal emergency powers law, with interest and additional funds to cover legal expenses. The company had previously warned investors that it expected a $1 billion hit to profits in 2025 due to the administration's tariff policies. In its legal filing, FedEx emphasized that 'this Court has jurisdiction and authority to order remedial relief and refunds of IEEPA duties paid by importers,' arguing that the company had suffered injury from paying tariffs under now-illegal orders. The lawsuit comes amid growing legal uncertainty over whether businesses that paid tariffs under IEEPA are entitled to refunds, with trade experts predicting years of litigation over billions of dollars in tariff payments.
A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade. Commercial policy is an all encompassing term that is used to cover topics which involve international trade. Trade policy is often described in terms of a ...
This lawsuit by FedEx against the Trump administration represents the first major legal challenge seeking reimbursement for tariff payments made under the International Economic Emergency Powers Act, following the Supreme Court's ruling that these tariffs were unlawful. The potential for widespread lawsuits and legal battles over billions of dollars in payments highlights the significant disruption and uncertainty created by the Supreme Court's decision and could reshape international trade regulations.
Context & Background
FedEx sued the Trump administration over tariffs imposed under IEEPA.
The Supreme Court ruled Trump’s use of IEEPA to impose tariffs was an overreach of executive authority.
The lawsuit seeks a 'full refund' of duties paid by FedEx and other companies.
What Happens Next
This lawsuit is likely to trigger a wave of similar legal challenges from other businesses that paid tariffs under IEEPA, leading to protracted litigation in lower courts. The U.S. Court of International Trade will likely be tasked with overseeing these cases, and the outcome will determine whether businesses are entitled to refunds. The Biden administration's response to this legal challenge will be closely watched, as it could set a precedent for future trade disputes.
Frequently Asked Questions
What was the International Economic Emergency Powers Act (IEEPA)?
IEEPA was a law used by President Trump to unilaterally impose sweeping tariffs on most of the world, allowing him to bypass Congress.
What did the Supreme Court rule?
The Supreme Court ruled that President Trump exceeded his authority when he used IEEPA to impose tariffs.
Does this lawsuit affect all tariffs imposed by the Trump administration?
No, this lawsuit specifically targets tariffs imposed under IEEPA. It does not affect tariffs imposed under other laws, such as those on steel, aluminum, or certain vehicles.
Original Source
Politics FedEx sues Trump administration for "full refund" of tariff payments By Jacob Rosen Jacob Rosen Justice Department Reporter Jake Rosen is a reporter covering the Department of Justice. He was previously a campaign digital reporter covering President Trump's 2024 campaign and also served as an associate producer for "Face the Nation with Margaret Brennan." Read Full Bio Jacob Rosen February 23, 2026 / 7:40 PM EST / CBS News Add CBS News on Google FedEx sued the Trump administration over its tariffs on Monday, asking for a "full refund" of all payments it made to the government under a set of tariff policies that were ruled illegal by the Supreme Court . The complaint , filed in the U.S. Court of International Trade, is the first major lawsuit seeking tariff reimbursements since the high court ruled last week that President Trump had exceeded his authority when he used the International Economic Emergency Powers Act to unilaterally impose sweeping tariffs on most of the world. The Supreme Court did not indicate whether businesses that paid tariffs under IEEPA are entitled to refunds. The issue is expected to draw a flood of lawsuits that will be litigated in the lower courts over the billions of dollars in tariff payments that have been made over the last year, and trade experts have predicted years of legal wrangling . FedEx sought an order from the trade court that would force Customs and Border Protection to refund all duties paid last year under the federal emergency powers law. "This Court has jurisdiction and authority to order remedial relief and refunds of IEEPA duties paid by importers," FedEx wrote in its complaint, adding, "Plaintiffs have paid IEEPA duties to the United States and thus have suffered injury caused by those orders." "Supporting our customers as they navigate regulatory changes remains our priority," a FedEx spokesperson said in a statement. "FedEx has taken necessary action to protect the company's rights as an importer of record to...
