FedEx has filed a lawsuit in the U.S. Court of International Trade seeking a full refund of tariffs imposed under the Trump administration’s International Economic Emergency Powers Act (IEEPA). The filing, made on February 24, 2026, follows a Supreme Court decision that declared the tariffs unlawful, but the Court did not address whether businesses are entitled to refunds, leaving the question to lower courts.
The lawsuit argues that FedEx paid duties on imported goods and incurred additional costs to expedite shipments, entitling it to a refund with interest. FedEx’s spokesperson stated, "Supporting our customers as they navigate regulatory changes remains our priority. FedEx has taken necessary action to protect the company's rights as an importer of record to seek duty refunds from U.S. Customs and Border Protection following the U.S. Supreme Court's ruling that the tariffs issued under the International Emergency Economic Powers Act (IEEPA) are unlawful." The company has estimated a $1 billion hit to 2025 profits from the Trump‑era trade policies, a figure it cited in a September 2025 briefing.
FedEx’s Q3 FY2024 financials provide context for the lawsuit’s potential impact. Revenue fell 2% year‑over‑year to $21.7 billion, while net income rose 14% to $879 million. Adjusted earnings per share climbed to $3.86 from $3.41, driven by a 110% increase in FedEx Express operating income and a 1% revenue gain in FedEx Ground to $8.7 billion. The company also reported $550 million in savings from its DRIVE cost‑reduction program, underscoring its focus on operational efficiency. In Q2 FY2024, revenue was $22.2 billion, net income $1.4 billion, and adjusted EPS $4.05, with DRIVE savings of $540 million.
The lawsuit’s filing prompted a modest pre‑market uptick of 0.3% in FedEx’s stock, reflecting investor interest in the potential recovery of tariff payments. The market reaction was tempered by the broader context of ongoing tariff disputes and the uncertainty surrounding the Supreme Court’s ruling on refund entitlement.
FedEx is not alone in pursuing refunds. Costco, Revlon, and Bumble Bee Foods have also filed similar suits, and the Trump administration has threatened to impose new tariffs under a different trade law in response to the Court’s decision. The collective legal action signals a broader industry push to recover costs incurred under the Trump‑era tariffs and highlights the regulatory uncertainty that continues to affect U.S. importers.
The lawsuit underscores the importance of regulatory risk management for global logistics providers. A successful refund would not only offset the estimated $1 billion profit hit but also reinforce FedEx’s position as a proactive advocate for its customers. Conversely, a denial could leave the company exposed to ongoing tariff costs, potentially eroding the gains achieved through its DRIVE program and other cost‑control initiatives. The outcome will likely influence how other importers approach tariff compliance and litigation in the post‑Trump trade environment.
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