FedEx says it plans on issuing refunds to shippers and end consumers if a federal court orders the Trump administration to repay money collected from its many of its sweeping tariffs on U.S. trade partners since last April.
On Monday, the logistics giant sued the federal government and U.S. Customs and Border Protection (CBP) for a full refund of the tariffs issued under the International Emergency Economic Powers Act (IEEPA), which were struck down by the Supreme Court on Feb. 20.
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The nation’s highest court ruled that President Donald Trump exceeded his powers in imposing the emergency tariffs, upholding lower court rulings and deeming them unlawful. But the Supreme Court judges were mum on the prospect of refunds, leaving many questions unanswered and putting the onus on the U.S. Court of International Trade (CIT) to resolve any ensuing legal matters.
More than 2,000 companies have filed suit in the CIT in efforts to recoup costs from the illegal tariffs, including retail giants Costco and Dollar General, as well as fashion brands J.Crew and Prada and footwear sellers On Holdings and Skechers.
“If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” FedEx said in a statement on Thursday. “When that will happen and the exact process for requesting and issuing refunds will depend in part on future guidance from the government and the court.”
In the hours after FedEx filed the complaint, the courier called the decision a “necessary action to protect the company’s rights as an importer of record.”
“Supporting our customers as they navigate regulatory changes remains our priority,” a FedEx spokesperson said on Monday.
Treasury Secretary Scott Bessent said FedEx should explain how it will pass along any tariff rebates to customers in an interview with NBC News late Tuesday.
During the interview, Bessent cited that he found FedEx CEO Raj Subramaniam’s role as chair of the U.S.-China Business Council “very interesting because China is the largest payer of U.S. tariffs,” without elaborating. A New York Federal Reserve report published earlier in February said 90 percent of the tariffs imposed on imports are paid for by U.S. consumers and businesses.
Bessent said the administration would follow the ruling of the lower court if it ruled it had to distribute refunds. But it’s still unclear when the administration will return the estimated $175 billion collected since the IEEPA tariffs were first imposed, or how long such a process could take.
