FedEx SUES Trump Over Billions

FedEx launches first major lawsuit against President Trump’s administration, demanding full refunds on billions in tariffs ruled unconstitutional by the Supreme Court.

Story Snapshot

Supreme Court ruled 6-3 that Trump exceeded authority using IEEPA for sweeping tariffs, striking them down.
FedEx filed suit on February 23, 2026, in U.S. Court of International Trade as importer of record seeking all duties back plus interest.
Over $175 billion in tariff collections now at risk of refunds, exposing government to massive liability.
Experts predict flood of similar corporate lawsuits, years of litigation ahead.
Trump quickly imposed new 15% global tariff under different law, signaling ongoing trade battles.

Supreme Court Delivers Constitutional Check

The U.S. Supreme Court ruled 6-3 on February 21, 2026, that President Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs. Justices determined IEEPA, meant for national security sanctions, does not grant unlimited trade powers without Congress. This decision upholds constitutional limits on executive overreach, a victory for checks and balances conservatives champion. The ruling voids tariffs on dozens of countries but spares steel, aluminum duties under other statutes.

FedEx Strikes First in Refund Battle

FedEx filed its lawsuit on February 23, 2026, in the U.S. Court of International Trade, naming Customs and Border Protection, Commissioner Rodney Scott, and the United States as defendants. As importer of record, FedEx holds detailed customs records proving tariff payments on goods hit by IEEPA policies. The company demands full refunds of all duties paid, plus interest and legal fees. A FedEx spokesperson emphasized protecting customer interests amid regulatory shifts. This action positions FedEx strongly for recovery.

Stakeholders Gear Up for Litigation Wave

Major corporations like Costco, Revlon, and EssilorLuxottica, represented by Crowell & Moring alongside FedEx, prepare similar refund claims. Small businesses such as V.O.S. Selections and Learning Resources originally challenged the tariffs, paving the way to the Supreme Court. The Trump administration defends its policies while facing potential $175 billion in payouts. U.S. Customs handles collections but now confronts refund orders. Power tilts toward document-holding importers over consumers lacking proof.

Expert Views on Refund Prospects

Trade attorney Ron Ciotti of Hinckley Allen states importers and suppliers stand best chance for refunds due to customs documents detailing tariff costs. Businesses with escalation clauses in contracts may pass savings downstream. Ciotti doubts consumer refunds, noting lack of proof linking price hikes directly to tariffs. Experts foresee years of lower court battles defining recovery processes. Even California Governor Gavin Newsom demands checks for Americans, highlighting broad stakes.

President Trump responded swiftly, imposing a new 15% global tariff under a 1974 trade law limited to 150 days for balance-of-payments issues. This move sustains America First trade pressure despite the setback. Conservatives view the ruling as judicial reminder of Article I powers, urging Congress to lead on tariffs. Logistics and import sectors brace for uncertainty, with FedEx absorbing a $1 billion 2025 profit hit from these policies. Outcomes will shape future executive trade actions and business strategies.