#

FedEx sues US government seeking refund over Trump tariffs

The US has collected $1.36 billion in tariffs on British exports in just four months, six times more than in the same period last year, highlighting the toll of President Donald Trump’s duties on UK manufacturers.

FedEx has launched legal action against the US government seeking a full refund of tariffs imposed under Donald Trump, after the US Supreme Court ruled last week that the levies had been introduced unlawfully.

The case, filed in the US Court of International Trade, names the United States, US Customs and Border Protection and its commissioner Rodney Scott as defendants. FedEx did not specify the amount it is seeking to reclaim but said it is entitled to reimbursement as an importer of record.

The lawsuit marks the first major corporate attempt to recover funds from an estimated $175bn in tariffs collected under Trump’s trade regime. Other companies are expected to follow.

In a 6–3 ruling, the US Supreme Court found that Trump had exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping import duties during peacetime. The court held that Congress retains sole constitutional authority to levy taxes, including tariffs.

However, the justices did not directly address whether importers would be entitled to refunds. In a dissenting opinion, Justice Brett Kavanaugh noted that the judgment left open questions about how billions of dollars already collected might be returned and warned that large-scale repayments could have significant implications for the US Treasury.

FedEx said it was taking action to protect its rights following the ruling. “While the Supreme Court did not address the issue of refunds, FedEx has taken necessary action to seek duty refunds from US Customs and Border Protection,” the company said.

The decision represents the first time the Supreme Court has overturned a major policy initiative of Trump’s second term and challenges the administration’s expansive interpretation of executive authority in trade matters.

Despite the setback, Trump signalled he would press ahead with new tariffs under alternative statutory powers. He announced a temporary 10 per cent global tariff, which was subsequently raised to 15 per cent within 24 hours.

US trade representative Jamieson Greer said the policy direction remained unchanged, arguing that tariffs provide leverage in international negotiations.

Senate Democrats have called for any refunded tariff revenues to prioritise small businesses and consumers. According to analysis by the Tax Foundation, tariffs in 2025 effectively amounted to a $1,000 tax increase on US households, contributing to higher prices and reduced economic output.

If successful, FedEx’s claim could open the door to a wave of refund demands from importers, potentially reshaping the financial legacy of one of the most aggressive trade policies in modern US history.

Read more:
FedEx sues US government seeking refund over Trump tariffs