A new legal war has started in America between the business world and the Trump administration. The world’s famous logistics company FedEx has filed a direct case against the US government. The company’s demand is very clear that whatever tariffs were collected by the President using emergency powers, should be refunded along with interest. The company took this decision after the US Supreme Court declared the tariff completely illegal.
FedEx’s big step after Supreme Court setback
Recently the US Supreme Court had given an important decision with an overwhelming majority of 6-3. The top court made it clear that the tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act were completely illegal. The court clearly believes that the Trump administration has exceeded its statutory powers while implementing these rules. Taking this decision as a solid basis, FedEx and its sister company FedEx Logistics have taken this big legal step. The company has clearly stated in its 11-page long complaint that every penny collected illegally should be returned with interest. However, the total amount of refund has not been publicly disclosed by the company yet.
Will the return of 170 billion dollars become a thorn in the neck for the government?
The Supreme Court has declared the huge tariffs illegal, but the real issue is regarding the return of this money. If we look at the figures, trading companies have so far paid tariffs worth more than $170 billion. Supreme Court Justice Brett Kavanaugh himself has given a serious warning that this entire refund process may prove to be very complicated and disorganized. On the other hand, President Trump has also given a strong indication that the refund will not be paid immediately under any circumstances. According to legal experts and experts, this entire matter may remain entangled in court negotiations for the next two years. This means that companies may have to wait a long time to get their money back.
The government’s old bet will now fall heavily on itself.
In this entire legal battle, the biggest problem for the government is its own old argument. Last year, when the Trade Court first ruled these tariffs were illegal, the Justice Department appealed to the court to continue the collections. At that time, the US government had argued in the court that if they lose the case in future, all the companies will be returned their entire money with interest. On the basis of this argument, the government got relief at that time. In the month of December, the three judge bench of the Trade Court had also given a clear indication that the government cannot go back on this old promise at any cost. Now this old assurance has become a big legal challenge for the administration.
Government’s billions of dollars are at stake
This step taken by FedEx is not limited to just one company, but it is going to decide the direction of the entire American business structure. According to an economic analysis, currently more than 1500 cases related to refunds are pending in the courts. It is estimated that by the end of 2025, more than three lakh importers had paid huge amounts of these controversial tariffs. If the FedEx case completely clears the way for refunds, then billions of dollars will have to be paid suddenly from the US treasury.