FedEx Seeks Refund After Supreme Court Strikes Down
Trump Tariffs
The company, which did not specify how
much it was seeking, is expected to be one of many demanding compensation
for levies ruled unlawful.
1.
Lawsuit Filed for Tariff Refund
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FedEx has filed a lawsuit in the U.S. Court of
International Trade seeking a refund of tariffs recently ruled unlawful.
2.
Tariffs Previously Upheld by Trump Administration
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The emergency tariffs were imposed about a year ago
under Donald Trump.
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The Supreme Court of the United States ruled last
week that these levies were unlawful.
3.
Potentially Large Financial Stakes
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Analysts estimate the invalidated tariffs raised up
to $175 billion for the U.S. government.
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FedEx did not disclose the exact refund amount but
is believed to be seeking millions of dollars.
4.
Role as Importer of Record
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FedEx often acts as the “importer of record,”
paying customs duties upfront.
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The company typically passes those charges to
customers and is now seeking to reclaim those payments.
5.
Government Response
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The administration had previously indicated it
would comply with refund orders if tariffs were deemed unlawful.
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However, President Trump suggested refunds may face
further legal challenges.
6.
More Lawsuits Expected
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FedEx is expected to be among many corporations
pursuing compensation.
o
Dozens of companies had already challenged the
tariffs before the Supreme Court ruling.
7.
Customer Implications
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Analysts say FedEx customers will likely expect
refunds to be passed back to them.
o
Larger corporate clients are expected to have
formal processes to recover such payments.
Overall
Implication
The lawsuit marks the beginning of what could
become a wave of corporate claims seeking repayment of billions collected under
tariffs invalidated by the Supreme Court. The case could have significant
fiscal implications for the U.S. government and set precedents for how unlawful
trade measures are unwound.
FedEx
filed a lawsuit on Monday demanding a refund of the U.S. tariffs that the
Supreme Court ruled were unlawful last week.
The
lawsuit, filed in the U.S. Court of International Trade, asks that Customs and
Border Protection, the agency that collects tariffs, make the repayment to
FedEx. The company is expected to be one of many that will sue for a refund.
FedEx
did not state a dollar amount that it is seeking. Analysts say the emergency
tariffs that the Supreme Court rejected, which President Trump began imposing a
year ago, had raised as much as $175 billion for the U.S. government.
“It
was totally expected that they would do this, because there’s probably millions
and millions of dollars on the line here for them,” said Scott Lincicome, an
economist at the Cato Institute, a libertarian think tank, referring to FedEx.
The
Trump administration’s lawyers, in a motion submitted to the trade court last
year, said the government would comply with an order to provide refunds if the
tariffs were found to be unlawful. But Mr. Trump suggested last week that
refunds would face a legal battle.
FedEx
often makes customs payments to the government, acting as a so-called importer
of record, and then typically passes along the charges to the recipients of the
goods. “FedEx has taken necessary action to protect the company’s rights as an
importer of record to seek duty refunds,” the company said in a statement
Monday.
FedEx
is likely to be joined by many other large corporations demanding refunds.
Dozens of companies filed lawsuits against the emergency tariffs before the
Supreme Court’s ruling.
FedEx’s
customers will expect the company to pass on any refunds, Mr. Lincicome said,
noting that larger customers are likely to have well-established procedures for
being paid back.