Supreme Court Ruling
Last Friday the Supreme Court said the tariffs imposed under the International Emergency Economic Powers Act were unlawful. Six justices agreed. The court did not hand out instructions on refunds. That left the cash question open. When the high court punts on money, the rest of us get to wait for lawyers and agencies to argue over who pays and who gets paid back.
FedEx Files Suit
FedEx went to the U.S. Court of International Trade and asked for a full refund of the duties it paid after the tariffs were put in place. The company argues it should not be out the money for a government action the court has now called illegal. Expect other big players to watch closely. Corporations do not like leaving millions on the table when a legal door opens.
What FedEx Wants
The lawsuit seeks repayment of all IEEPA duties FedEx paid. That is straightforward on paper. It becomes messy in practice. There will be arguments about timing, who has standing, and which transactions qualify. Bureaucracies love slow, detailed fights. That means refunds could take years. Tax and trade officials will make their case. So will the companies demanding their cash back.
What Comes Next
Expect a wave of litigation and more claims at the Court of International Trade. Some firms already sued before the Supreme Court decision. Now they have stronger footing. The Treasury and Customs will have to decide how to respond. Courts will untangle precedent, procedure, and paperwork. For the rest of us this will look like a legal relay race where papers, not judgment, cross the finish line first.
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