US SC's blow to Trump: FedEx sues US admin seeking 'full refund' of tariffs

FedEx has approached the US Court of International Trade seeking a refund of tariffs imposed under President Donald Trump’s emergency measures. This follows last week’s 6-3 Supreme Court verdict which ruled that Trump overstepped his authority by using the International Emergency Economic Powers Act (IEEPA), a sanctions law, to impose tariffs on imported goods. In its complaint, the logistic giant said "Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States." The company and its logistics arm acted as the importer of record for goods subject to the tariffs, though it did not disclose the total sum it hopes to recover. The lawsuit lists US Customs and Border Protection (CBP), commissioner Rodney Scott, and the United States of America as defendants, according to a Reuters report.FedEx is being represented by Washington, DC-based law firm Crowell & Moring, which also represents other companies pursuing IEEPA tariff refunds, including Costco, Revlon, and EssilorLuxottica.According to economists at the Penn-Wharton Budget Model, more than $175 billion in tariffs could now be eligible for refunds. Legal experts say that importers and distributors are likely to have the strongest cases for refunds, as they often maintain detailed customs documents and invoices linking tariff costs to specific goods. Ron Ciotti, partner at Hinckley Allen in Boston, told Reuters, “If there was a tariff escalation in your contract or a price adjustment clause based on tariffs, and that's why the price went up, if you had a contract that stated that, then you might be able to get a refund.”Meanwhile, California governor Gavin Newsom, considered a potential Democratic presidential candidate in 2028, called for Americans to receive refund cheques following the Supreme Court decision.Ciotti cautioned, however, that many consumers may struggle to claim refunds. “I've heard some (people) saying this is such a win for the consumer, because they should get refunds back on certain products that would have been under tariffs," he said. "I don't see how they can,” he added, noting that many businesses and consumers paid higher prices without documentation explaining how tariffs affected costs, making it difficult to substantiate claims.