Global delivery giant FedEx has initiated legal proceedings against the United States government, seeking reimbursement of tariffs imposed under President Donald Trump's emergency trade powers. The case was lodged on Monday, Feb. 23, in the US Court of International Trade.
The lawsuit comes in the wake of a 6-3 ruling by the US Supreme Court on Friday, Feb. 20, which said that Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA), a law primarily intended for sanctions, to levy tariffs on imported goods.
According to economists at the Penn-Wharton Budget Model, more than $175 billion in tariff revenues could now be eligible for refunds, reported Reuters.
Trade lawyers anticipate a surge of claims aimed at reclaiming billions of dollars in collections, though the mechanics of how refunds will be processed reportedly remain uncertain and must be clarified by a lower court.
In its court filing, FedEx stated, “Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,” referring to the tariffs imposed under Trump's authority, according to Reuters.
ALSO READ: Paramount Submits Higher Offer For Warner Bros.
FedEx, along with its logistics arm, acted as the importer of record for goods affected by the IEEPA duties. However, it did not disclose the amount it is seeking to recover.
FedEx has named US Customs and Border Protection, its commissioner Rodney Scott and the United States of America as defendants in the case.
Legal experts suggest that importers, distributors and suppliers may have the strongest claims, given their access to detailed customs records. Ron Ciotti, a partner at the Boston-based firm Hinckley Allen who represents construction contractors and developers across the US, said that contractual terms could prove decisive. “If there was a tariff escalation in your contract or a price adjustment clause based on tariffs, and that's why the price went up, if you had a contract that stated that, then you might be able to get a refund,” Ciotti said, reported Reuters.
He also cast doubt on whether end consumers would be able to benefit directly from the ruling. “I've heard some (people) saying this is such a win for the consumer, because they should get refunds back on certain products that would have been under tariffs,” said Ciotti. “I don't see how they can,” he said, adding that many businesses and consumers paid higher prices for goods without any written explanation about how tariffs contributed to higher prices and may lack the proof needed to win a refund.
Separately, California Governor Gavin Newsom, regarded as a potential Democratic presidential contender in 2028, called for Americans to receive refund cheques following the Supreme Court's decision striking down the tariffs.
ALSO READ: Court Bars Release Of Jack Smith Report In Trump Documents Case — Here's What It Means
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.