FedEx Joins Corporate Exodus from Illegal Tariffs, Suing Government for Billions in Refunds

The landscape of American trade underwent a seismic shift in February 2026, when the United States Supreme Court issued a 6-3 ruling that dismantled a sweeping “reciprocal” tariff regime. In the wake of this landmark decision, FedEx—one of the world’s largest logistics providers—has officially joined a massive corporate coalition in suing the federal government. Seeking a “full refund” of duties paid under a policy now deemed unconstitutional, FedEx’s legal action highlights a multi-billion-dollar tug-of-war between the private sector and the Treasury.

The Spark: A Courtroom Defeat for Emergency Powers

The controversy centers on President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose aggressive tariffs on nearly every country that trades with the U.S. In February 2025, the administration invoked national security concerns to impose these duties, expanding them in April to include a “reciprocity” tax aimed at leveling the playing field with 57 nations.

However, the Supreme Court ruled in Learning Resources, Inc. v. Trump that the president overstepped his executive authority. The court clarified that while the IEEPA allows for freezing assets or restricting trade during emergencies, it does not grant the executive branch the unilateral power to impose broad taxes—a power the Constitution reserves strictly for Congress.

FedEx Enters the Fray

On Monday, February 23, 2026, FedEx filed its complaint in the U.S. Court of International Trade (CIT). By doing so, it joins a list of more than 1,000 companies—including Costco, Revlon, and DoorDash—that are demanding their money back.

FedEx’s position is unique because of its role as an “importer of record.” The company frequently pays customs duties upfront to expedite shipments through the border, later passing those costs on to recipients. In its filing, FedEx alleged it has “suffered injury” and incurred high administrative costs to manage the complex tariff environment. While the lawsuit does not disclose a specific dollar amount, internal projections from late 2025 suggested the company anticipated a $1 billion hit to its fiscal 2026 earnings due to trade policy volatility.

The Economic Stakes: $175 Billion in Limbo

The scale of the potential refunds is staggering. Federal data shows that as of late 2025, the Treasury had collected more than $133 billion specifically from IEEPA-linked tariffs, with some estimates suggesting the total pool of contested funds could reach $175 billion.

For companies like FedEx, these refunds represent more than just a line item; they are a necessary injection of liquidity to offset a year of shrinking trade lanes. According to FedEx CEO Raj Subramaniam, the company was forced to reduce its trans-Pacific outbound capacity by 25% in 2025 as trade between the U.S. and China cooled. A refund would provide the capital needed to reinvest in automation and “nearshoring” logistics as supply chains move away from China toward Southeast Asia and Mexico.

A Fragmented and Chaotic Refund Process

Despite the Supreme Court victory, the path to a payout is anything but clear. Legal experts, including Duke Law professor Tim Meyer, warn that the government has not yet established a streamlined “portal” or process for these refunds.

Furthermore, a significant ethical and logistical question remains: who actually gets the money? While companies paid the tariffs to the government, many passed those costs on to consumers through higher prices. There is currently no mechanism to ensure that a FedEx refund results in a rebate for the small business owner who paid more for their international shipping last July.

The Administration’s Pivot

President Trump has sharply criticized the ruling, calling it “disloyal” and vowing that his trade policy remains unchanged. Almost immediately following the court’s decision, the administration announced a new 10% global tariff—briefly threatened at 15%—under Section 122 of the Trade Act of 1974. This law allows for temporary tariffs of up to 150 days to address “large and serious balance-of-payments deficits.”

While this move provides the administration with a stopgap, trade experts believe these “new” tariffs will also face immediate legal challenges. Shippers are now operating in a state of “perpetual pivot,” attempting to calculate margins in a market where tax rates can change via social media posts.

Conclusion: A Long Road Ahead

FedEx’s lawsuit marks a turning point where corporate America has shifted from compliance to active litigation. As the Court of International Trade begins to process the backlog of claims, the logistics industry will be watching closely. For FedEx, the goal is “redress for injuries” and the return of billions in capital. For the broader economy, the result will determine whether the 2025 trade experiment ends in a massive redistribution of wealth back to the private sector or a years-long stalemate in the federal courts.

Sources and Links

• Associated Press: FedEx joins other US companies in seeking a refund after Trump tariffs are ruled illegal
• The Guardian: FedEx sues US government, seeking ‘full refund’ over Trump tariffs
• Fox Business: FedEx sues Trump administration for full tariff refunds after Supreme Court ruling on IEEPA
• The Loadstar: News: FedEx sues Trump administration for tariff refund
• CFO Brew: FedEx hurt by tariffs in Q1, but sales and profit rose