FedEx Sues for Trump Tariff Refund
The global transportation and postal company FedEx has recently taken significant legal action, filing a lawsuit seeking a full refund for the tariffs imposed during the Trump administration. These tariffs, introduced last April under the International Emergency Economic Powers Act (IEEPA), levied higher taxes on imports from various countries.
Supreme Court Ruling Opens the Door for Refunds
A pivotal ruling from the US Supreme Court last week determined that the president did not have the legal authority to impose these tariffs under the IEEPA. This decision creates an opportunity for companies, including FedEx, to reclaim the additional import duties they have paid since the tariffs were implemented.
– FedEx has stated: Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States.
– The lawsuit does not specify the exact amount of the refund being sought.
– The defendants named in the case include US Customs and Border Protection (CBP), its commissioner, Rodney Scott, and the US government itself.
In its filing with the US Court of International Trade, FedEx expressed that it had paid these tariffs and was seeking legal recourse for those expenses.
FedEx Takes Action to Protect Its Rights
In a statement released on Monday evening, FedEx noted that it has taken necessary action to protect the company’s rights as an importer of record to seek duty refunds from CBP following the Supreme Court’s ruling.
In addition to FedEx’s lawsuit, legislative efforts are underway:
– On Monday, 22 US Senators, all Democrats, introduced a bill demanding the Trump administration refund all revenue collected from these tariffs, along with interest, within 180 days.
– The proposed legislation mandates that CBP prioritize reimbursements for small businesses.
It’s estimated that during the Trump administration, the US collected over $130 billion (£97 billion) from tariffs on various goods through the IEEPA.
Implications of the Court’s Ruling
While the Supreme Court’s decision declared Trump’s IEEPA tariffs illegal, it did not provide specific instructions on how the refunds should be processed. Following the ruling, both Trump and Treasury Secretary Scott Bessent indicated that resolving the issue of refunds might take years in the courts.
Prior to the Supreme Court’s decision, numerous companies, including cosmetics manufacturer Revlon, aluminum producer Alcoa, and food importers like Bumble Bee, had already filed lawsuits challenging the tariffs.
– Costco also preemptively sued the Trump administration last year, arguing: The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning.
Just days after the Supreme Court ruling, Trump enacted a new proclamation under Section 122 of the Trade Act of 1974, imposing a temporary 10% tariff on imported goods from all countries; he indicated plans to raise this to 15%.
Conclusion
FedEx’s lawsuit for a Trump tariff refund marks a significant step in the ongoing battles over trade policy and its implications for American businesses. With numerous companies now lined up for potential refunds and legislative measures being introduced, the courts and the government face increasing pressure to clarify how these tariffs and refunds should be handled. As the legal and political landscape continues to evolve, businesses will be closely monitoring the outcomes of these pivotal developments.