FedEx filed a lawsuit against the U.S. Government on February 23, 2026, seeking a full refund of tariffs paid after the Supreme Court invalidated the legal basis for those levies last week. The suit, filed in the U.S. Court of International Trade, marks the first major action by a company to recoup funds collected under the tariffs, potentially opening the door to billions of dollars in claims.
The lawsuit centers on tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA). The Supreme Court, in a 6-3 ruling on February 20, determined that President Trump had exceeded his authority in utilizing IEEPA to justify the tariffs. While the ruling struck down the legal foundation for the tariffs, it did not explicitly address whether importers were entitled to refunds for payments already made.
FedEx’s complaint asserts that the company “has paid IEEPA duties to the United States and thus has suffered injury caused by those orders.” The company is requesting a “full refund” of all duties paid, along with applicable interest, and the recovery of attorneys’ fees and other associated costs. The specific dollar amount FedEx seeks remains undisclosed.
Experts anticipate a surge in similar lawsuits. Penn-Wharton Budget Model economists estimate that more than $175 billion in revenue was collected under the IEEPA tariffs, all of which is now potentially subject to refund claims. Trade attorneys widely expect a flood of litigation as companies seek to recover these funds. The Court of International Trade previously ruled in December that companies must file suit to initiate the reliquidation process and pursue refunds.
The tariffs had a significant impact on FedEx’s business. The company estimated last May that its operating profits would be reduced by $1 billion during the fiscal year ending May 31, due in part to the financial burden of the tariffs. FedEx shares experienced a 20% decline following the initial announcement of the tariffs, a period referred to as “Liberation Day” by some observers.
The lawsuit names U.S. Customs and Border Protection, its commissioner Rodney Scott, and the United States of America as defendants. The White House has not yet issued a public response to FedEx’s legal action.
A Fresh York Fed study previously found that U.S. Consumers and companies ultimately bore 90% of the cost of President Trump’s import taxes, despite claims that other countries were covering the expense. The outcome of FedEx’s lawsuit, and the subsequent wave of litigation expected, will likely determine how much of that cost can be recovered.
