Former U.S. Secretary of Commerce Wilbur Ross joins ‘Making Money’ to discuss the Supreme Court ruling regarding Trump’s tariffs and their implications.
FedEx announced Thursday it will return any tariff refunds it may receive to its customers who paid them as it seeks compensation from the federal government for tariffs paid that were subsequently ruled illegal.
The shipping giant said in a statement that it intends to return any tariff refunds to shippers and customers who bore the cost of the tariffs. The move follows the Supreme Court’s ruling last week that a key portion of President Donald Trump’s trade agenda — his tariffs imposed under the International Emergency Economic Powers Act (IEEPA) — was struck down as 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 refunds for IEEPA tariffs on behalf of our customers and FedEx,” the company said.
“Our intent is straightforward: If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges. When that will happen and the exact process for requesting and issuing refunds will depend in part on future guidance from the government and the court.
FEDEX SUES TRUMP ADMINISTRATION FOR FULL TARIFF REFUNDS AFTER SUPREME COURT RULING ON IEEPA
FedEx said that it will return any tariff refunds it receives to the shippers and customers who paid them. (Kevin Carter)
“We are committed to transparency and will communicate clearly as additional direction becomes available from the U.S. government and the court,” FedEx added while directing customers to a tariff-related webpage on the company’s site that will host the latest information on the topic.
The Supreme Court struck down the IEEPA tariffs after finding that the law cited by Trump in imposing the import taxes didn’t authorize the president to impose tariffs, which meant the levies were unconstitutional.
The ruling didn’t affect tariffs imposed by the Trump administration that used other legal authorities. The White House has signaled it aims to impose other tariffs to offset the IEEPA tariff revenue, and Treasury Secretary Scott Bessent said last month the Treasury Department had the funds necessary for potential tariff refunds, though he said that may be a time-consuming process.
WILL REFUNDS BE ISSUED AFTER SUPREME COURT RULING ON TRUMP TARIFFS?
Tariffs are taxes on imported goods that are 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 those authorities before they were struck down, revenue that could now be subject to tariff refunds, according to a range of estimates.
The nonpartisan Tax Foundation put the figure at about $150 billion in IEEPA tariffs collected, while the nonpartisan Penn-Wharton Budget Model’s 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
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With the case remanded to lower courts after the Supreme Court’s ruling striking down the IEEPA tariffs, it’s possible the courts and the government may reach an agreement on a format for providing refunds to tariff payers.
However, there are avenues to pursue tariff refunds by filing suit in the U.S. Court of International Trade, which FedEx and more than 1,000 companies have done, and through appeals to 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 BUSINESSES APPROACH TARIFF REFUNDS?
President Trump’s IEEPA tariffs were struck down as 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, while foreign exporters bore 14% as of November 2025.
The New York Fed’s researchers found that the share borne by U.S. businesses and consumers declined over the year from 94% in the January through August period to 92% in September and October.
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Those findings are similar to those contained in another analysis by the nonpartisan Congressional Budget Office (CBO), which noted in its 10-year budget and economic outlook that foreign exporters were absorbing about 5% of the tariff costs with the remaining 95% falling on U.S. firms and consumers.
