Deep Dive Briefing:

  • FedEx is seeking a full refund from the United States for all tariffs it paid under the International Emergency Economic Powers Act (IEEPA). According to the lawsuit filed by the carrier on Monday with the U.S. Court of International Trade,court filing, its claims are specifically directed at tariffs imposed under IEEPA.
  • Last Friday,a Supreme Court rulingbrought an end to the tariff policy implemented by former President Donald Trump through IEEPA. In its lawsuit, FedEx stated that it "has paid IEEPA tariffs on multiple import entries" and is requesting refunds, plus interest, for all import entries declared to U.S. Customs and Border Protection (CBP) where IEEPA tariffs were applied.
  • FedEx is asking the court to order CBP to reliquidate any import entries on which IEEPA tariffs were assessed and to ensure that no unliquidated entries are subject to IEEPA tariffs. Liquidation is the process by which CBP determines the final amount of duties owed on imported goods, after which the agency notifies the importer of record whether they owe money or are entitled to a refund.

Deep Insight:

FedEx now joins a growing list of well-known companies seeking tariff refunds through the courts, following lawsuits byCostco, Revlon Consumer Products, and Bumble Bee Foods. However, FedEx is among the first carriers to take action following the Supreme Court's ruling. Despite the court's decision, there remains uncertainty about how the United States will ultimately handle the refund process for IEEPA tariffs.

"The Court today said nothing about whether and how the Government will refund the billions of dollars it collected from importers," Justice Brett Kavanaugh said in hisdissentlast Friday, "but the process will likely be, as was acknowledged at oral argument, a 'mess.'"

FedEx acknowledged the uncertainty of refunds on itsofficial websiteand stated it would "communicate any relevant information and updates to customers in a timely manner." As a transportation service provider and customs broker, FedEx collects duties and taxes from shippers on behalf of its business.

"We understand this news has raised questions about previously assessed duties and taxes," FedEx said on its website. "We are committed to helping customers navigate the regulatory environment and will provide updates as information becomes available."

The case raises the question of whether FedEx, as the importer of record, is obligated to pass on any refunds to customers who may have shared the cost of the tariffs. Geoffrey Gertz, a senior fellow at the Center for a New American Security think tank, noted onLinkedIn.

"Who actually gets the refunds, and through what process, will need to be negotiated contract by contract, and will likely require significant billable hours from lawyers," Gertz said.

Rapidly changing trade policies are hitting FedEx's profits. The carrier expects a $300 million adverse impact in fiscal year 2026 due to direct trade-related expenses, such as higher customs clearance fees, Executive Vice President and Chief Financial Officer John Dietrich said during the September 2025earnings call.