FedEx sues over Trump-era tariffs
Company seeks refund after Supreme Court limits emergency tariff authority
FedEx has initiated a lawsuit in the U.S. Court of International Trade, seeking a refund for payments made under emergency tariffs imposed during Donald Trump’s administration. The company contends that these tariffs were unlawfully applied to certain shipments, following a recent Supreme Court ruling that determined Trump overstepped his authority by invoking the International Emergency Economic Powers Act to impose tariffs on imports.
This Supreme Court ruling, which was decided 6-3, opens the door for potential refunds on over $175 billion in tariff collections. The tariffs notably affected imports from China during heightened trade tensions, prompting widespread litigation from various companies aiming to recover funds.
FedEx asserts that it acted as a customs broker and logistics intermediary, collecting and remitting duties on behalf of its customers. The company argues that the government exceeded its authority in enforcing these tariffs and that various collections did not adhere to statutory requirements. If found improperly imposed, FedEx believes it should recover the funds paid under protest.
The legal landscape surrounding these tariffs has already seen companies challenge their legitimacy, and some courts have ordered reviews or partial reimbursements. Legal analysts note that the fate of this lawsuit may hinge on interpretations of trade law and the scope of emergency powers granted to the president.
As the Biden administration continues to maintain many of the Trump-era tariffs while conducting periodic reviews, a ruling in favor of FedEx could have significant financial implications for the company and other importers who faced similar duties. The government is expected to defend the legality of these measures, suggesting that this case will prolong the ongoing legal disputes stemming from the U.S.-China trade conflict.
