FedEx Takes Legal Action Seeking Tariff Refunds After IEEPA Case

FedEx is taking its fight over tariffs to federal court. The shipping giant filed suit Monday against the U.S. government and U.S. Customs and Border Protection (CBP), seeking a full refund of duties paid under President Donald Trump’s tariff orders issued through the International Emergency Economic Powers Act (IEEPA).

The lawsuit follows Friday’s 6-3 Supreme Court ruling in Learning Resources, Inc. v. Trump, which held that IEEPA does not authorize a president to impose sweeping tariffs.

Filed in the U.S. Court of International Trade, the complaint demands:

• A full refund of all IEEPA duties paid

• Interest on those payments

• Compensation for financial harm tied to expedited customs processing

“Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,” the company stated in its filing.

FedEx has not publicly disclosed the exact dollar amount at issue. However, in September the company warned that U.S. trade policies could result in a $1 billion hit to fiscal-year earnings though not all of that figure stemmed from IEEPA-related tariffs.

The high court ruled that IEEPA, a 1977 law traditionally used to address economic emergencies such as sanctions, does not grant the president authority to impose tariffs.

In February 2025, Trump invoked IEEPA to levy duties on imports from China, Canada, and Mexico, citing national security and trade imbalance concerns. In April, the administration expanded the measures into reciprocal tariffs targeting 57 countries.

The duties ultimately generated more than $175 billion in revenue, paid largely by U.S. importers.

While the Court did not directly address the mechanics of refunding collected tariffs, it affirmed that the Court of International Trade holds exclusive jurisdiction over such disputes.

CBP has since announced that collection of IEEPA duties will cease.

FedEx is one of the highest-profile companies to seek reimbursement following the ruling. The company is represented by Crowell & Moring, the same firm representing Costco and Revlon in related refund cases.

“FedEx has taken necessary action to protect the company’s rights as an importer of record,” the company said in a statement.

At present, no formal refund process has been established by federal regulators.

The case underscores the massive financial stakes tied to the tariff battle. According to government data, U.S. importers paid tens of billions annually under the expanded tariff regime.

If courts ultimately require broad refunds, the fiscal and political implications could be significant:

• Potential repayment of billions in collected duties

• Administrative challenges in recalculating and processing refunds

• Renewed debate over presidential trade authority

While the White House has defended its broader trade strategy as necessary to protect American manufacturing and national security, the Supreme Court’s ruling narrows the legal pathway available under emergency powers.

The litigation now moves to the Court of International Trade, where the mechanics of repayment and possibly the scope will be determined.

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