FedEx announced Thursday that it would return any fare refunds it may receive to its customers who paid them, in an effort to seek compensation from the federal government for fares paid that were later found to be illegal.
The shipping giant said in a statement that it intends to return any tariff refunds to shippers and customers who bore the cost of the tariffs. The move follows the Supreme Court’s ruling last week that a key part of President that of Donald Trump His trade agenda – his tariffs imposed under the International Emergency Economic Powers Act (IEEPA) – was declared illegal.
“We remain focused on supporting our customers as they adapt to the latest regulatory changes and have taken procedural action to preserve our right to IEEPA rate reimbursement on behalf of our customers and FedEx,” the company said.
“Our intention is simple: If refunds are issued to FedEx, we will reimburse the shippers and consumers who initially incurred these charges. When this happens and the exact process for requesting and issuing refunds will depend in part on future direction from the government and the court.
FEDEX SUES TRUMP ADMINISTRATION FOR FULL REFUND OF TARIFFS AFTER SUPREME COURT RULING ON IEEPA
FedEx said it would return any rate refunds it receives to shippers and the customers who paid them. (Kevin Carter)
“We are committed to transparency and will communicate clearly as additional guidance becomes available from the U.S. government and the court,” FedEx added, directing customers to a pricing webpage on the company’s website which will host the latest information on the subject.
THE Supreme Court struck down the IEEPA tariffs after finding that the law Trump cited to impose the import taxes did not authorize the president to impose tariffs, meaning the levies were unconstitutional.
The decision did not affect tariffs imposed by the Trump administration which used other legal authorities. The White House has indicated it is considering imposing additional tariffs to offset IEEPA tariff revenues, and Treasury Secretary Scott Bessent said last month that the Treasury Department has the funds for possible tariff refunds, although he said it could take time.
WILL REFUNDS BE ISSUED AFTER THE SUPREME COURT’S RULING ON TRUMP RATES?
Tariffs are taxes on imported products that are paid by the importer, who usually passes on the higher costs to consumers through higher prices. (Brandon Bell/Getty Images)
While the IEEPA tariffs were in effect, the federal government collected more than $150 billion through these authorizations before they were rescinded, revenue that could now be subject to taxes. fare refundsaccording to a series of estimates.
The nonpartisan Tax Foundation estimates the figure at around $150 billion. IEEPA rates collected, while the nonpartisan Penn-Wharton budget model’s estimate was $175 billion and a JPMorgan analysis suggested a range of $150 billion to $200 billion.
Teleprinter Security Last Change Change % FDX FEDEX CORP. 387.70 +5.12 +1.34% With the case sent back to the lower courts after the Supreme Court’s decision striking down the IEEPA rates, it is possible that the courts and the government can reach an agreement on a format for refunding taxpayers.
However, there are ways to obtain a refund of customs duties by filing suit in the United States. International Trade Courtwhich FedEx and more than 1,000 companies have done, and using U.S. Customs and Border Protection, which collects tariffs on behalf of the Department of Homeland Security and remits them to the Treasury Department.
HOW SHOULD BUSINESSES APPROACH RATE REFUNDS?
President Trump’s IEEPA tariffs have been declared unconstitutional by the Supreme Court. (Chip Somodevilla/Getty Images)
A recent study of Federal Reserve Bank of New York found that U.S. businesses and consumers bore 86% of the tariff burden, while foreign exporters bore 14% as of November 2025.
Researchers at the New York Fed found that the share borne by American businesses and consumers decreased over the year, from 94% between January and August to 92% in September and October.
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These findings are similar to those contained in another analysis by the nonpartisan group Congressional Budget Office (CBO)which noted in its 10-year budget and economic outlook that foreign exporters absorb about 5 percent of tariff costs, with the remaining 95 percent falling to U.S. businesses and consumers.