Setback for Trump: Days after Supreme Court order, FedEx sues US govt for refund of tariffs

FedEx is pursuing a lawsuit in the US Court of International Trade seeking a refund of tariffs imposed under emergency powers previously enacted by President Donald Trump. The legal action follows a US Supreme Court ruling that found the tariffs unlawful, prompting companies to try to reclaim funds paid under the measures, news agency Reuters reported. 

Crowell & Moring, the Washington, D.C.-based law firm representing FedEx, is also involved in similar cases for other large companies, indicating the issue could affect a broad range of businesses. The firm is representing Costco, Revlon, and EssilorLuxottica in similar IEEPA tariff refund cases. 

In its court filing, FedEx stated, "Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States." The company acted as the importer of record for affected goods but has not disclosed the amount it seeks to recover. The lawsuit names US Customs and Border Protection, its commissioner Rodney Scott, and the United States of America as defendants. 

Trade lawyers suggest the coming months may see many companies seeking to recover billions of dollars in tariffs, although the process for refunds remains unclear. Although the Supreme Court ruled, the lower court must now decide the mechanism for processing refunds. This has created uncertainty and left businesses, including FedEx, waiting for clarity about how they will recover their funds.

Ron Ciotti, a partner at law firm Hinckley Allen, commented that importers, distributors, and suppliers may be best placed to secure refunds. Their advantage, he said, is that they usually have customs paperwork or invoices showing the tariff costs for specific goods.

Ciotti added, "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," stressing the importance of proper documentation.

He also addressed the topic of consumer refunds, stating, "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," but followed by, "I don't see how they can," pointing to the difficulty in tracing tariff-related price increases for consumers.