Washington DC, 24 February (H.S.): Federal Express has launched a bold legal salvo against the United States government, demanding a full refund of tariffs imposed under President Donald Trump's emergency economic powers, mere days after the Supreme Court invalidated them as unlawful. This landmark 11-page complaint, filed at the U.S. Court of International Trade, signals the onset of potentially massive corporate repayment claims totaling billions, as over 300,000 importers scramble to recoup duties paid since last year.

The Supreme Court's 6-3 decision last week held that Trump's invocation of the International Emergency Economic Powers Act (IEEPA) exceeded statutory limits, striking down sweeping tariffs on most U.S. trading partners without congressional approval. While affirming the trade court's exclusive jurisdiction, the majority punted refund entitlements to lower courts, with dissenting Justice Brett Kavanaugh warning of a prospective mess in processing claims.

FedEx Corp. and affiliate FedEx Logistics named U.S. Customs and Border Protection, Commissioner Rodney Scott, and the federal government as defendants, explicitly seeking reimbursement of all IEEPA duties Plaintiffs have paid to the United States, plus interest and legal fees.

Complicating the Justice Department's defense, prior filings assured courts that prevailing importers will assuredly receive payment on their refund with interest, a stance a trade court panel invoked last December to bar contradictory positions under judicial estoppel. Legal experts like Siddartha Rao of Hoguet Newman Regal & Kenney foresee a labyrinthine administrative process that could delay liquidity for firms, even as President Trump hinted at protracted litigation: I guess it has to get litigated for the next two years.

FedEx's move, represented by Crowell & Moring—counsel to peers like Costco and Revlon—ushers in over 1,500 pending suits, representing just a sliver of affected entities.

Though undisclosed in filings, FedEx previously flagged a $1 billion earnings hit for fiscal 2026 from these policies, equivalent to 16% of prior-year profits, amid challenges for small exporters. This first major post-ruling corporate action could catalyze a wave of refunds surpassing $170 billion paid under the regime, testing the Trump administration's resolve amid mounting legal risks.

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Hindusthan Samachar / Jun Sarkar