FedEx Sues US Government for Full Tariff Refund Following Supreme Court Ruling

FedEx Initiates Legal Action for Tariff Refunds

FedEx, the global transportation and logistics giant, has filed a lawsuit against the United States government, including U.S. Customs and Border Protection (CBP) and its commissioner, Rodney Scott. The lawsuit, lodged on Monday, February 23, 2026, in the U.S. Court of International Trade, seeks a 'full refund' of all duties paid by the company under tariffs imposed using the International Emergency Economic Powers Act (IEEPA).

This legal move by FedEx comes just days after the Supreme Court issued a 6-3 ruling on Friday, February 20, 2026, which declared that the former administration had overstepped its authority in levying these tariffs.

Supreme Court Deems Tariffs Unlawful

The Supreme Court's decision, in the case of Learning Resources, Inc. v. Trump, clarified that the IEEPA does not grant the President the authority to unilaterally impose broad tariffs during peacetime. The Court affirmed that the constitutional power to levy taxes rests exclusively with Congress. This landmark ruling has significant implications, as an estimated $175 billion in U.S. tariff collections are now subject to potential refunds.

FedEx, through its entities Federal Express Corp and FedEx Logistics, argued in its complaint that it 'suffered injury' as a result of these tariffs and is seeking remedial relief and refunds. The company had previously estimated a potential $1 billion impact on its fiscal-year earnings due to these trade policies.

Implications for Businesses and the Government

FedEx is reportedly the first major U.S. company to file such a lawsuit in the wake of the Supreme Court's decision, though other corporations like Costco and Revlon had initiated similar legal challenges prior to the ruling. The Supreme Court's ruling, however, did not provide specific guidance on the process for refunding the billions of dollars in tariffs collected.

In response to the Supreme Court's decision, the former administration moved to impose new tariffs under Section 122 of the Trade Act of 1974. Meanwhile, Senate Democrats have introduced legislation aimed at requiring the government to refund IEEPA tariffs within 180 days, with a focus on prioritizing small businesses.

Uncertainty Surrounds Refund Process

The lack of a clear refund mechanism from the Supreme Court has created uncertainty for businesses and the government alike. Legal experts anticipate that resolving the complexities surrounding these tariffs and the potential refund process could take months or even years. FedEx has stated on its website that while it has taken 'necessary action to protect the company's rights as an importer of record to seek duty refunds from U.S. Customs and Border Protection,' no 'refund process has been established' yet.