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FedEx Sues for Full Refund After CBP Halts IEEPA Tariffs, Democrats Target $175B Refund

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  • WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images)
    WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images)
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    WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images) Source Full size
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  • WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images)
    WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images)
    Image: Newsweek
    WASHINGTON, DC – NOVEMBER 20: U.S. Supreme Court Justice Brett Kavanaugh attends the funeral service of former Vice President Dick Cheney at the National Cathedral on November 20, 2025 in Washington, DC. Cheney, who served as the 46th Vice President under President George W. Bush and as the 17th Secretary of Defense, passed away at the age of 84 due to complications from pneumonia and vascular disease. (Photo by Andrew Harnik/Getty Images) Source Full size
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Supreme Court invalidates IEEPA‑based tariffs On 20 Feb 2026 the Court issued a 6‑3 ruling that the International Emergency Economic Powers Act does not grant the president authority to levy import duties, striking down the “Liberation Day” tariffs imposed by President Trump earlier that year [5][6]. The decision immediately opened a legal pathway for importers to seek reimbursement of duties collected since the tariffs’ inception [1][8]. Justices warned that the ruling could create a “mess” for Treasury as it attempts to unwind billions of dollars in revenue [9][8].

CBP suspends tariff collection and Trump launches new duties At 12:01 a.m. EST on 24 Feb 2026, U.S. Customs and Border Protection deactivated all IEEPA tariff codes, effectively stopping further collections [3]. Within hours the president announced a 10 % global tariff under Section 122 of the 1974 Trade Act, with a planned increase to 15 % after a short period [1][4][5][7]. The new measures are legally distinct from the invalidated IEEPA duties and remain in force despite the Court’s ruling [3][4].

Democrats introduce sweeping refund legislation On 23 Feb 2026 Senators Ron Wyden, Ed Markey and Jeanne Shaheen unveiled a bill requiring Customs to return roughly $175 billion in IEEPA‑derived revenue, plus interest, within 180 days and to prioritize small‑business claimants [2]. The proposal frames the refunds as a “crucial first step” before the November midterm elections and cites a Penn Wharton estimate that the payout would average about $1,300 per household [2]. Treasury Secretary Scott Bessent countered that refunds are a matter for the lower courts, while the White House dismissed the effort as partisan [2].

Importers file lawsuits to secure priority refunds FedEx lodged a complaint in the U.S. Court of International Trade on 24 Feb 2026 seeking a full reimbursement of all IEEPA duties it paid, naming CBP and its commissioner Rodney Scott as defendants [1]. Earlier suits by Costco, Revlon, Bumble Bee Foods and others were filed before the Supreme Court decision, positioning those firms for early reimbursement [1][6][7]. Estimates of potential refunds range from $133 billion to $175 billion, reflecting differing calculations of total duties collected [2][5][8][9].

Refund process expected to be protracted and limited Trade lawyers warn that importers must pursue individual actions before the Court of International Trade, a route that could extend 12‑18 months or longer [6][8]. Treasury officials acknowledge the funds exist but doubt that consumers will see the money, describing the effort as a “corporate boondoggle” [5][8]. Justice Brett Kavanaugh’s dissent highlighted the risk of fiscal strain and disruption to global trade agreements if the Treasury attempts a rapid mass repayment [9][8].

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Timeline

Apr 14, 2025 – Victor Schwartz files the lead‑plaintiff lawsuit VOS Selections, Inc. v. Trump, consolidating challenges from 12 states and Learning Resources and setting the legal foundation for overturning the emergency tariffs [4].

Sep 2025 – U.S. Customs data show importers, including Costco, have paid roughly $90 billion in duties imposed under the IEEPA tariff program, creating a large pool of potential refunds [3].

Dec 1 – 3, 2025 – Costco files a series of lawsuits in the U.S. Court of International Trade (Dec 1, 2025 [10, 19]; Dec 2, 2025 [7]; Dec 3, 2025 [6]) demanding full refunds of tariffs it deems unlawful and joining other firms such as Revlon and Bumble Bee in pre‑emptive litigation.

Dec 15, 2025 – Customs and Border Protection begins tariff liquidation, giving importers a 180‑day window to protest bills; Costco warns the deadline may close before a Supreme Court ruling arrives [14].

Nov 5, 2025 – The Supreme Court hears oral arguments on the legality of Trump’s use of the 1977 International Emergency Economic Powers Act to impose sweeping tariffs, with several justices questioning the president’s authority [7, 10, 14, 19].

Early 2025 – Two lower federal courts rule that the president lacks authority to impose global tariffs under IEEPA, paving the way for the Supreme Court challenge [2].

Jan 12, 2026 – Donald Trump posts on Truth Social that a Supreme Court loss would create a “complete mess” and make refunding billions “almost impossible,” warning of chaos if the tariffs are struck down [2, 9].

Feb 20, 2026 – The Supreme Court issues a 6‑3 decision that IEEPA does not grant presidential tariff power, nullifying the Trump‑imposed duties and opening the door for roughly $133‑$175 billion in refund claims [5, 8, 13, 16].

Feb 20, 2026 – Justice Brett Kavanaugh files a dissent, warning that the refund process will become a “mess” that could destabilize Treasury finances and trade agreements [8].

Feb 21, 2026 – President Trump announces a new 10 % across‑the‑board tariff for 150 days under Section 122 of the Trade Act and hints at raising it to 15 %, seeking a legally distinct pathway after the Court’s ruling [12, 16].

Feb 21, 2026 – State officials, including Illinois Gov. J.B. Pritzker and Nevada Treasurer Zach Conine, demand billions in refunds for residents, citing per‑household impacts of up to $1,700 [13].

Feb 21, 2026 – Victor Schwartz reports harassment following the Court’s win, describing the environment as “a little ugly” while importers anticipate $134 billion in potential refunds [4].

Feb 23, 2026 – Senate Democrats introduce a bill requiring the return of roughly $175 billion collected under the illegal tariffs, with interest and priority for small businesses, calling the measure a “crucial first step” before the midterm elections [11].

Feb 23, 2026 – U.S. Customs and Border Protection announces it will cease collection of IEEPA‑linked tariffs at 12:01 a.m. EST on Feb 24, 2026, while leaving other Trump tariffs (Section 232, Section 301) untouched [15].

Feb 24, 2026 – FedEx files a lawsuit in the U.S. Court of International Trade demanding a full refund of all IEEPA duties it paid, joining other importers in seeking reimbursement after the Supreme Court decision [1].

Feb 24, 2026 – President Trump signs a proclamation invoking Section 122 of the 1974 Trade Act to impose a temporary 10 % global tariff, stating he will raise it to 15 % despite ongoing legal challenges over refunds [1].

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