Washington: Logistics titan FedEx launched a high-profile legal challenge against the Trump administration Monday, demanding a "full refund" for billions of dollars in tariffs recently declared unlawful by the U.S. Supreme Court.

The lawsuit, filed in the U.S. Court of International Trade, marks the first major corporate attempt to claw back payments after the high court’s 6-3 ruling last week. The justices found that President Donald Trump overstepped his constitutional authority by using emergency economic powers to bypass Congress and tax nearly all imported goods.

The ruling has left the federal government vulnerable to a wave of litigation over the roughly $175 billion collected from importers since early 2025.

The Fight for a 'Full Refund'

In its complaint against U.S. Customs and Border Protection (CBP), FedEx argues that as the "importer of record," it suffered direct financial injury from the invalidated executive orders. While the company did not specify a dollar amount in the filing, it previously warned investors that the trade policies could result in a $1 billion hit to its fiscal-year earnings.

"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," the company said in a statement.

While several companies like Costco and Revlon had sued prior to Friday’s decision, the FedEx filing is the first post-ruling strike. The Supreme Court notably did not provide a roadmap for how the government should return the money, a silence Justice Brett Kavanaugh warned in his dissent would lead to a procedural "mess."

A Shifting Trade Front

The legal setback has not deterred the President’s "America First" agenda. Within hours of the ruling, Trump pivoted to the Trade Act of 1974 to implement a new 10% global tariff, which he subsequently vowed to raise to 15%. This new framework is scheduled to take effect on Tuesday.

Key highlights of the ongoing trade battle include:

  • Collection Halt: CBP confirmed it would stop collecting the illegal duties linked to the International Emergency Economic Powers Act (IEEPA) at 12:01 a.m. Tuesday.
  • Fiscal Impact: The Treasury potentially owes between $175 billion and $180 billion in refunds, though the administration has signalled it may fight these claims in court for years.
  • Alternative Authority: The new 15% tariffs rely on Section 122 of the Trade Act, which allows for temporary surcharges to address balance-of-payment emergencies.

As FedEx leads the corporate charge for reimbursement, trade experts anticipate hundreds of similar filings from retailers and manufacturers who bore the brunt of the invalidated tax regime.

With inputs from AFP