FedEx demands a billion-dollar refund from President Trump’s tariffs after the Supreme Court struck them down as unconstitutional, forcing American taxpayers to foot the bill for executive overreach.
Story Snapshot
- Supreme Court rules 6-3 that Trump’s “reciprocal” tariffs under emergency powers violate the Constitution.
- FedEx files lawsuit seeking full refund of tariffs paid, estimating $1 billion hit in 2026 alone.
- Treasury collected over $133 billion; potential refunds strain federal budget and taxpayers.
- Trump vows alternative tariffs but faces congressional hurdles and corporate lawsuits.
Supreme Court Invalidates Tariff Powers
The Supreme Court issued a 6-3 decision on February 20, 2026, ruling President Trump’s “reciprocal” tariffs unconstitutional. Trump had imposed these sweeping duties on imports from nearly every country using the International Emergency Economic Powers Act (IEEPA). The Court found this exceeded presidential authority without congressional approval. Treasury collected over $133 billion by December, with projections of a $3 trillion decade-long impact. This decision limits executive trade actions, reinforcing constitutional checks on power. Businesses now challenge payments made under invalid policy.
FedEx Leads Refund Lawsuits
FedEx filed suit on February 23, 2026, in the U.S. Court of International Trade against the government. The company claims direct injury from tariffs paid, quantifying $1 billion in 2026 costs alone. FedEx seeks full refunds to recoup funds for operations. Costco and Revlon filed similar actions post-ruling. The National Retail Federation urged seamless refunds Friday, calling it essential for business certainty and reinvestment. These moves highlight corporate frustration with unpredictable trade policies that burden American companies.
Trump Administration Responds to Setback
President Trump held a news conference on February 20, labeling the Supreme Court justices “disloyal” and alleging foreign influence without evidence. He vowed alternative measures under Section 122 of the Trade Act of 1974, allowing up to 15% tariffs for 150 days with congressional extension needed beyond. The administration anticipates lawsuits and lacks a clear repayment plan. This first major filing by FedEx tests government defenses. Power shifts to courts and Congress amid midterm pressures, exposing limits on unilateral executive trade power.
Short-term refunds offer FedEx and others immediate cash relief, boosting logistics amid economic pressures. Long-term, over $133 billion in repayments strain Treasury coffers, shifting costs to taxpayers. Importers gain certainty, enabling employee investments and lower customer prices. The ruling sets precedent against emergency tariff use, favoring limited government and congressional oversight in trade. NRF views this as stability for U.S. businesses against overreach.
Economic and Political Fallout
Refunds act as stimulus for retail and logistics sectors hammered by billions in tariff costs. Taxpayers bear the burden of repaying invalid collections, underscoring risks of unchecked executive actions. Politically, the decision weakens Trump’s trade leverage, inviting midterm backlash if alternatives falter. Congress holds keys to extensions, prioritizing American interests over globalist free trade excesses. This saga reminds conservatives of constitutional safeguards against government overreach, protecting businesses and families from fiscal mismanagement.
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FedEx suing for refund after Trump’s tariffs ruled illegal
