FedEx is suing the U.S. government, the latest company to request a refund on what it paid for tariffs set by President Trump last year after the Supreme Court ruled that the tariffs are illegal.
More than 1,000 companies have filed suit in the U.S. Court of International Trade in efforts to recoup costs from the illegal tariffs, including large U.S. corporations like Costco and Revlon. Most of the lawsuits were already in process ahead of the Supreme Court decision Friday.
FedEx said in a filing with the U.S. Court of International Trade that they have “suffered injury” from having to pay the tariffs and that the relief they’re seeking from the court would redress those injuries.
Tim Meyer, a law professor at Duke University, said each case is likely to have to be tried individually.
“We’re going to have to wait and see how the government decides to handle the refund claims,” he said. “And then if the government chooses not to set up a process for the refunds, ultimately the Court of International Trade is going to have to adjudicate over a thousand cases.”
The National Retail Federation said in a statement on Friday that the Supreme Court’s ruling provided certainty for U.S. businesses and manufacturers.
“We urge the lower court to ensure a seamless process to refund the tariffs to U.S. importers,” it said. “The refunds will serve as an economic boost and allow companies to reinvest in their operations, their employees and their customers.”
The Supreme Court struck down President Trump’s far-reaching global tariffs on Friday. Trump said he was “absolutely ashamed” of some justices who ruled 6-3 against him, calling them “disloyal to our Constitution” and “lapdogs.” At one point he even raised the specter of foreign influence without citing any evidence.
The court’s ruling found tariffs that Trump imposed under an emergency powers law were unconstitutional, including the sweeping “reciprocal” tariffs he levied on nearly every other country.
The Treasury had collected more than $133 billion from the import taxes the president has imposed under the emergency powers law as of December, federal data show. The impact over the next decade has been estimated at some $3 trillion. A study by the Federal Reserve Bank of New York found U.S. businesses and consumers are paying nearly 90% of the tariffs that Trump has imposed.
Trump has vowed to collect tariffs through other means. He reached for a stopgap option immediately after his defeat Friday at the Supreme Court: Section 122 of the Trade Act of 1974 allows the president to impose tariffs of up to 15% for up to 150 days. But any extension beyond 150 days must be approved by a Congress likely to balk at passing a tax increase as November’s midterm elections loom.
Chapman writes for the Associated Press.
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