FedEx said it will return any tariff refunds it receives to shippers and consumers. The company filed suit this week seeking repayment for tariffs the U.S. Supreme Court found unlawful. U.S. Court of International Trade will hear aspects of the case, company lawyers said.
Company files suit amid legal uncertainty
FedEx’s complaint asks the government to refund amounts the company paid under emergency import levies. The Supreme Court last week struck down those tariffs as beyond the president’s legal authority. U.S. Supreme Court found that the statute cited did not authorize the tariffs. The ruling left unanswered how refunds will be distributed.
In a written statement, the company said it would pass refunds to customers. “If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” the statement said. “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.” The company added it would keep customers informed.
Within days of the pledge, at least two proposed class actions were filed. One lawsuit contends FedEx’s public promise “creates no legally enforceable obligation.” Plaintiffs say the pledge is conditional and may never produce refunds. They seek a court order to protect consumers’ claims.
Legal experts say the fights could be long. Courts must decide whether companies can recover tariffs they paid. They must also rule how any recovered funds should be shared with customers. Some companies have sued; others have signaled they will pass money on.
Administration officials have said the Treasury has funds that could be used for refunds. But the government has not set a process for distributing money. That uncertainty complicates corporate plans to repay customers.
FedEx filed its suit in the U.S. Court of International Trade to preserve its right to reimburse customers. The company asked the court to direct the government to return the duties. FedEx said it will follow the court’s instructions on timing and process.