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News|International TradeFedEx sues US government for tariff refund after Supreme Court rulingThe logistics giant will seek to recoup tariff fees, although the courts have yet to establish a refund process.

FedEx has initiated legal action against the United States government, seeking a refund for tariffs previously paid under former President Donald Trump's administration. This follows a recent decision by the US Supreme Court, which declared that only…

ABy Allison BurkeFeb 24, 20262 min read

FedEx has initiated legal action against the United States government, seeking a refund for tariffs previously paid under former President Donald Trump's administration. This follows a recent decision by the US Supreme Court, which declared that only Congress has the authority to impose tariffs during peacetime.

On Mon, Feb 20, 2026, FedEx filed a lawsuit in the US Court of International Trade against Customs and Border Protection and its commissioner, Rodney Scott. The suit contends that the tariffs were levied under the 1977 International Emergency Powers Act (IEEPA), causing the company financial harm, and requests a full refund based on the Supreme Court's ruling.

FedEx had projected a financial impact of $1 billion in 2026 due to these tariffs, exacerbated by a decision to terminate exemptions for small packages valued under $800.

The Supreme Court's decision leaves open questions regarding potential refunds of the billions collected under IEEPA. No official refund process has been outlined by regulators or the courts, which creates ongoing uncertainty for FedEx, other logistics firms, and US consumers.

This follows a recent decision by the US Supreme Court, which declared that only Congress has the authority to impose tariffs during peacetime.
Allison Burke · Thehackingpost

Industry experts suggest that resolving these refund issues may take considerable time. Meanwhile, former President Trump has proposed a new 15 percent "global tariff" to succeed the IEEPA tariffs.

FedEx stated it has undertaken necessary legal measures to safeguard its rights as an importer to seek duty refunds, although no formal refund mechanism is yet in place. The Chamber of Commerce and the National Retail Federation are advocating for a swift resolution to the refund process.

Other companies, including Costco, Revlon, and EssilorLuxottica, are also pursuing tariff refunds. The Yale Budget Lab reported that, as of mid-December 2025, the US had collected approximately $142 billion in tariffs under IEEPA, while other estimates suggest the figure is closer to $175 billion.

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Despite the removal of IEEPA tariffs, other tariffs under Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 remain in effect. The Yale Budget Lab notes that the average tariff rate for consumers now stands at 9.1 percent, a decrease from the 16.9 percent average under IEEPA, yet still the highest rate since the end of World War II.

Based on reporting by Al Jazeera.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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