Friday’s Supreme Court ruling striking down President Donald Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA) notably left out one question: Would importers receive a refund for the potentially billions of dollars they paid in illegal tariffs? One company is demanding an answer.
FedEx is suing the Trump administration for a full tariff refund, making it the first major company to sue for a payout since the decision.
“Plaintiffs have paid IEEPA duties to the United States and thus have suffered injury caused by those orders. The relief Plaintiffs seek from this Court would redress those injuries,” the company wrote in the complaint filed on Monday in the U.S. Court of International Trade.
The White House didn’t immediately respond to Fortune’s request for comment.
Last May, the company estimated operating profits would take a $1 billion hit during the current fiscal year, which ends May 31. The company is asking for a “full refund” with “interest as provided by law.” It is also asking for the government to cover attorneys’ fees and other costs for bringing the action, as well as “further relief as this Court deems proper.”
The lawsuit was expected as the Court of International Trade ruled in December companies must file a suit in order to seek reliquidation and a refund. Many more cases are expected, as more than $175 billion in revenue collected under the IEEPA tariffs is at stake, according to Penn-Wharton Budget Model economists.
Tariffs have weighed heavily on U.S. businesses and consumers. A New York Fed study found U.S. consumers and companies have paid 90% of President Donald Trump’s import taxes, despite his claims other countries are shouldering the burden.
FedEx shares took a 20% hit in the immediate aftermath of Liberation Day, when Trump announced sweeping tariffs under IEEPA. The company’s most profitable trade route between the U.S. and China “deteriorated sharply” after the announcement, chief customer officer Brie Carere said in a June earnings call. Shares recovered from the initial shock, rising more than 50% from April.
“Supporting our customers as they navigate regulatory changes remains our priority,” FedEx spokesperson Isabel Rollison said in a statement to Fortune. “FedEx 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 following the U.S. Supreme Court’s ruling that the tariffs issued under the International Emergency Economic Powers Act (IEEPA) are unlawful.”
Refunds are possible, administration officials say
Trump administration officials indicated in the past refunds would come, if tariffs were struck down by the Supreme Court. After companies such as Costco, Reebok, and Xerox preemptively sued the administration for tariff refunds last year, the Justice Department acknowledged the government would issue refunds to the plaintiffs if the tariffs were deemed unlawful as part of officials’ argument for why the plaintiffs should not receive emergency relief.
In recent days, the administration has said it will look to lower courts for guidance on refunds. Speaking to Fox News Sunday over the weekend, U.S. Trade Representative Jamieson Greer said: “[The courts] created the situation, and we’ll follow whatever they say to do.”
Treasury Secretary Scott Bessent also indicated refunds would be likely if the Supreme Court ruled against the administration/struck down tariffs.
“I’m not going to get out ahead of the court,” he told CNN on Sunday. “We will follow the court’s direction. But as I said, that could be weeks or months away. That decision was not rendered on Friday.”