FedEx sues government over tariff refunds

Envelopes and parcels of FedEx
Tariff lawsuit FILE PHOTO: FedEx is suing the federal government, asking for a refund of tariffs paid that are now deemed by the Supreme Court as illegal. (monticellllo - stock.adobe.com)

Shipping company FedEx has filed a lawsuit against the federal government asking for refunds for the tariffs it paid set by President Donald Trump.

The company is among the more than 1,000 that have filed lawsuits in the U.S. Court of International Trade trying to get back the money paid before the Supreme Court ruled that the tariffs instituted by the administration were illegal, The Associated Press reported.

Trump disagreed with the 6-3 ruling, saying that he was “absolutely ashamed” that some of the jurists ruled against his administration. He called them “disloyal to our Constitution.”

The president was using an emergency powers law to levy the fees, which included “reciprocal” tariffs for almost every other country, the AP reported.

The government collected more than $133 billion in tariffs as of December, but a study by the Federal Reserve Bank of New York found that U.S. businesses and consumers are paying nearly 90% of the tariffs, according to the AP.

FedEx claims it “suffered injury” from paying the tariffs.

It has not said how much it is asking to be returned, The New York Times reported.

The company typically pays the customs payments to the government as the “importer of record” and then passes the charge to the package recipients, according to the newspaper.

“We’re going to have to wait and see how the government decides to handle the refund claims,” Duke Law professor Tim Meyer told the AP. “And then if the government chooses not to set up a process for the refunds, ultimately the Court of International Trade is going to have to adjudicate over a thousand cases.”

It is more than likely that each case will have to be heard separately, according to Meyer.

If granted, The New York Times expected FedEx to pass the refunds on to customers. Forbes, however, said it is unclear if customers will see the refunds.

Trump has pledged to collect tariffs through other ways, including under Section 122 of the Trade Act of 1974, the AP reported. That move is only permitted for 150 days unless Congress approves an extension.

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