Former U.S. Secretary of Commerce Wilbur Ross joins ‘Making Money’ to discuss the Supreme Court’s ruling on Trump’s tariffs and their implications.
FedEx announced Thursday that it will return any fare refunds it receives to customers who paid them, as it seeks compensation from the federal government for fares paid that were subsequently deemed illegal.
The shipping giant said in a statement that it plans to return any rate refunds to shippers and customers who bore the cost of the rates. The move follows last week’s Supreme Court ruling that an important part of the president becomes president Donald Trump’s trade agenda – its tariffs imposed under the International Emergency Economic Powers Act (IEEPA) – was labeled illegal.
“We remain focused on supporting our customers as they adapt to the latest regulatory changes and have taken a procedural step to preserve our right to reimbursement of IEEPA fees on behalf of our customers and FedEx,” the company said.
“Our intent is clear: if refunds are issued to FedEx, we will provide refunds to the shippers and consumers who originally bore these costs. When that will happen and the exact process for requesting and issuing refunds will depend in part on future government and court guidance.
FEDEX SUES TRUMP ADMINISTRATION FOR FULL FARE REFUNDS AFTER SUPREME COURT RULING OVER IEEPA
FedEx said it will refund any tariff refunds received to shippers and customers who paid them. (Kevin Carter)
“We are committed to transparency and will communicate clearly as additional guidance becomes available from the U.S. government and the courts,” FedEx added, directing customers to a rate related web page on the company’s website, where the latest information on the subject can be found.
The Supreme Court scrapped the IEEPA tariffs after determining that the law Trump cited in imposing the import taxes did not authorize the president to impose tariffs, meaning the duties were unconstitutional.
The ruling did not affect tariffs imposed by the Trump administration, which used other legal authorities. The White House has indicated it plans to impose other tariffs to offset IEEPA tariff revenues, and Treasury Secretary Scott Bessent said last month that the Treasury Department had the resources needed for potential tariff refunds, although he said this could be a time-consuming process.
WILL REFUNDS BE ISSUED AFTER THE SUPREME COURT RULING ON TRUMP TARIFFS?
Tariffs are taxes on imported goods paid by the importer, who typically passes the higher costs on to consumers through higher prices. (Brandon Bell/Getty Images)
While the IEEPA tariffs were in effect, the federal government collected more than $150 billion under these authorities before they were eliminated; income that could now be subject to fare refundsaccording to a range of estimates.
The nonpartisan Tax Foundation estimated the amount at about $150 billion IEEPA rates collected, while the nonpartisan Penn-Wharton Budget Model estimate was $175 billion and an analysis by JPMorgan suggested a range of $150 billion to $200 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDX | FEDEX CORP. | 387.70 | +5.12 |
+1.34% |
Now that the case has been remanded to lower courts following the Supreme Court ruling striking down the IEEPA rates, it is possible that the courts and the government will agree on a format for issuing refunds to rate payers.
However, there are options to pursue tariff refunds by filing a lawsuit in the US Court of International Tradewhich FedEx and more than 1,000 companies have done, and by relying on U.S. Customs and Border Protection, which collects tariffs on behalf of the Department of Homeland Security and remits them to the Treasury Department.
HOW SHOULD COMPANIES HANDLE FEE REFUNDS?
President Trump’s IEEPA tariffs were ruled unconstitutional by the Supreme Court. (Chip Somodevilla/Getty Images)
A recent study by the Federal Reserve Bank of New York found that U.S. businesses and consumers bore 86% of the tariff burden as of November 2025, while foreign exporters bore 14%.
The New York Fed researchers found that the stock was buoyed by American businesses and consumers fell over the year from 94% in January to August to 92% in September and October.
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These findings are similar to those in another analysis from the Unbiased Congressional Budget Office (CBO)which noted in its 10-year budget and economic outlook that foreign exporters accounted for about 5% of tariff costs, while the remaining 95% were borne by U.S. businesses and consumers.
