FedEx announced Thursday (February 26) that it will return any tariff refunds it receives from the federal government to the shippers and customers who originally paid those costs — a move that comes after the U.S. Supreme Court struck down a key set of President Trump’s import taxes as unconstitutional.
The Supreme Court ruled last week that tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA) were illegal because the law didn’t give the president the authority to impose them. The ruling left more than $150 billion in collected tariff revenue potentially subject to refunds.
FedEx filed suit in the U.S. Court of International Trade to seek those refunds. The company said that if the government returns money to FedEx, it will pass that money along to its customers.
“Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” the company said in a statement. “When that will happen and the exact process for requesting and issuing refunds will depend in part on future guidance from the government and the court.”
FedEx is one of more than 1,000 companies that have filed suit in the U.S. Court of International Trade seeking to recover costs tied to the now-illegal tariffs. Large corporations like Costco and Revlon are also among the plaintiffs.
Many American consumers were hit directly by the IEEPA tariffs through international shipments. Some had packages held at customs for weeks, while others disputed tariff charges they said were calculated incorrectly — including charges applied at a 200% rate for Russian aluminum.
Estimates of the total IEEPA tariff revenue collected vary. The nonpartisan Tax Foundation put the figure at roughly $150 billion, the nonpartisan Penn-Wharton Budget Model estimated $175 billion, and an analysis by JPMorgan suggested a range of $150 billion to $200 billion.
Treasury Secretary Scott Bessent said last month that the Treasury Department has the funds available to cover potential refunds, but acknowledged the process could be lengthy. The libertarian-leaning Liberty Justice Center said Tuesday (February 24) that it filed coordinated motions in both the U.S. Court of Appeals for the Federal Circuit and the U.S. Court of International Trade to help set a refund process in motion, with a government response due Friday (February 27).
The Supreme Court’s ruling did not affect tariffs imposed by the Trump administration under other legal authorities. The White House has signaled it intends to implement additional tariffs to offset the lost IEEPA revenue.
FedEx said it is directing customers to a tariff-related webpage on its website for the latest updates on the refund process. “We are committed to transparency and will communicate clearly as additional direction becomes available from the U.S. government and the court,” the company added.
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