FedEx has officially filed a lawsuit against the United States government seeking a full refund for all duties paid under IEEPA tariff authority. The lawsuit, filed just eight days after the Supreme Court's landmark 6-3 ruling that struck down IEEPA tariffs as unconstitutional, sends an unmistakable signal to every importer in America: the money you paid in IEEPA duties is recoverable, and the clock to file your own claim is already running. An estimated $142 billion was collected from IEEPA tariffs over 2025, and a substantial portion of that revenue will likely be returned to the firms that paid it. Here is what the FedEx lawsuit means, why it matters for your business, and exactly what you need to do right now.

In This Article

The FedEx Lawsuit: What Happened and Why It Matters

On February 28, 2026, FedEx Corporation filed a formal lawsuit against the United States government demanding a complete refund of all customs duties it paid under tariffs imposed through the International Emergency Economic Powers Act (IEEPA). The filing represents one of the first major corporate actions to recover overpaid duties since the Supreme Court invalidated IEEPA tariffs on February 20, 2026.

FedEx is not a small player in this arena. As one of the world's largest logistics and shipping companies, FedEx acts as the importer of record on millions of shipments entering the United States each year. The company's exposure to IEEPA duties over the past year was enormous — spanning every product category, every origin country subject to IEEPA tariffs, and every port of entry where those tariffs were assessed.

The lawsuit argues a straightforward legal point: the Supreme Court has declared that IEEPA does not authorize the imposition of tariffs. Therefore, every dollar collected from FedEx under IEEPA tariff authority was collected without legal basis. The government is obligated to return those funds, plus interest.

Why This Matters for You: FedEx's lawsuit is not just about FedEx. It establishes a public, high-profile legal precedent that validates what trade attorneys have been saying since February 20: every importer who paid IEEPA duties is entitled to a refund. The FedEx filing creates pressure on the government to establish a systematic refund process rather than forcing each importer to fight individually. But critically, you should not wait for FedEx's case to resolve before filing your own claim. Your filing deadlines are running independently.

The significance of FedEx choosing to sue — rather than simply filing administrative refund claims through CBP — signals that the company expects the government may resist or delay mass refunds. A lawsuit in federal court puts the issue before a judge, creates binding deadlines for the government to respond, and generates legal precedent that other importers can cite in their own claims.

This is not a speculative or uncertain legal theory. The Supreme Court has already ruled. The only question remaining is how fast the government will return the money — and whether importers will file their claims before the deadlines expire.

The Legal Foundation: SCOTUS Strikes Down IEEPA Tariffs

The FedEx lawsuit rests on the Supreme Court's decision issued on February 20, 2026. In a 6-3 ruling, the Court held that the International Emergency Economic Powers Act does not grant the president authority to impose tariffs on imported goods.

Since early 2025, the Trump administration had used IEEPA as its primary legal instrument for imposing sweeping import duties. The administration declared national emergencies related to trade deficits, fentanyl trafficking, and illegal immigration, then invoked IEEPA to impose tariffs ranging from 10% to 50% on goods from China, Canada, Mexico, and dozens of other countries.

The Supreme Court rejected this interpretation entirely. The majority opinion held that IEEPA authorizes the president to regulate, block, and freeze financial transactions and property interests during national emergencies. It does not authorize the imposition of customs duties. The power to levy tariffs is a function of trade law that belongs to Congress, not an emergency power the president can invoke unilaterally.

Aspect Before Feb 20, 2026 After Feb 20, 2026
IEEPA Tariff Status Active and collected at all U.S. ports Declared unconstitutional — void
Legal Authority IEEPA cited as basis for tariffs IEEPA cannot authorize tariffs (SCOTUS)
Duties Already Paid Collected and held by U.S. Treasury Subject to refund claims by importers
Replacement Tariff N/A Section 122 — 15% global tariff (effective Feb 24)
Importer Action Required Pay duties as assessed File PSC or protest to recover overpaid IEEPA duties

The ruling did not affect tariffs imposed under other legal authorities. Section 301 tariffs on Chinese goods, Section 232 tariffs on steel and aluminum, antidumping and countervailing duties, and the new Section 122 global tariff all remain valid. But the IEEPA-specific duties — which represented the vast majority of tariff revenue collected in 2025 — are now legally void from the moment they were first imposed.

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Key Takeaway: The Supreme Court did not merely say IEEPA tariffs should stop going forward. It ruled they were never legally authorized. This is a critical distinction because it means the duties collected were collected without legal authority from the start — creating an obligation for the government to return them with interest.

$142 Billion in IEEPA Revenue: Where the Money Went

The scale of the IEEPA tariff collection is staggering. Over the course of 2025 and into early 2026, U.S. Customs and Border Protection collected an estimated $142 billion in duties assessed under IEEPA authority. This figure encompasses tariffs on imports from China, Canada, Mexico, the European Union, and virtually every other trading partner subject to IEEPA-based duties.

To understand the magnitude, consider these numbers:

IEEPA Tariff Category Typical Rates Est. Revenue Collected Refundable?
China IEEPA Surcharges 20%–35% $55–65 billion Yes — fully refundable
Reciprocal Tariffs (Global) 10%–50% $40–50 billion Yes — fully refundable
Canada IEEPA Duties 25%–35% $15–20 billion Yes — fully refundable
Mexico IEEPA Duties 25% $15–20 billion Yes — fully refundable
Fentanyl/Immigration Tariffs 10%–25% $10–15 billion Yes — fully refundable

The Supreme Court's ruling did not explicitly order the government to issue refunds. However, the Court did not rule out allowing importers to claim refunds on IEEPA tariffs already paid. This is a crucial nuance. By declining to shield the government from retroactive liability, the Court left the door open for exactly the kind of refund claims FedEx is now pursuing — and that every other importer can pursue as well.

Trade analysts and customs attorneys widely agree that a substantial portion of the $142 billion collected will ultimately be returned to the firms that paid it. The legal basis for refund claims is unambiguous: the tariffs were unconstitutional, the duties were collected without authority, and the importers are entitled to their money back.

Important Distinction: Only duties assessed specifically under IEEPA authority are refundable. Tariffs collected under Section 301 (China trade tariffs), Section 232 (steel and aluminum), antidumping/countervailing duties, and the new Section 122 global tariff are not affected by the Supreme Court ruling and are not refundable. Many importers had duties assessed under multiple authorities simultaneously — only the IEEPA portion qualifies for recovery.

The Refund Door Is Wide Open

The FedEx lawsuit is the most visible example, but it is far from the only path to recovering IEEPA duties. The established mechanisms for duty refunds through CBP are available to every importer of record who paid IEEPA tariffs — regardless of size, industry, or import volume.

There are two primary administrative paths to recovery:

Feature Post Summary Correction (PSC) Administrative Protest (CBP Form 19)
When to Use Entry has NOT yet been liquidated by CBP Entry has ALREADY been liquidated by CBP
Filing Deadline 300 days from entry date, or 15 days before scheduled liquidation 180 days from the date of liquidation
Processing Time 3–9 months (processed during normal liquidation cycle) 12–18+ months (formal CBP review process)
Filed Through ACE (Automated Commercial Environment) via your customs broker CBP Form 19 at the port of entry
If Denied Entry liquidates at original rate; then file a protest Appeal to Court of International Trade within 180 days

The third path — filing a lawsuit in the U.S. Court of International Trade, as FedEx has done — is typically reserved for cases where the administrative process has been exhausted, where the amounts are very large, or where the importer wants to force a faster resolution through judicial action.

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For Most Importers: You do not need to file a lawsuit like FedEx. The PSC and protest processes are sufficient for recovering your IEEPA duties. Your customs broker can file on your behalf. The critical action is to start now — deadlines are running on your earliest entries, and the sooner you file, the sooner you receive your refund plus interest.

Section 122: The New Tariff Landscape After IEEPA

While importers prepare to recover overpaid IEEPA duties, the trade landscape has already shifted. On February 22, 2026 — just two days after the Supreme Court ruling — the administration invoked Section 122 of the Trade Act of 1974 to impose a new 15% global tariff on imports. The tariff took effect on February 24, 2026.

Section 122 is a fundamentally different legal instrument than IEEPA. It explicitly authorizes the president to impose temporary import surcharges of up to 15% to address large trade deficits. The administration cited the U.S. trade deficit — which exceeded $1.1 trillion in 2025 — as justification for invoking this authority.

But Section 122 comes with critical limitations that IEEPA did not have:

1

150-Day Time Limit

Section 122 tariffs can only last 150 days without Congressional authorization. The clock started on February 24, 2026, meaning the tariff expires around July 24, 2026 unless Congress acts to extend or replace it. This creates a built-in expiration date that IEEPA tariffs never had.

2

15% Maximum Rate

Unlike IEEPA, which the administration used to impose tariffs of 25%, 35%, and even 50% on certain goods, Section 122 caps temporary duties at 15%. For many importers, this represents a significant reduction from the IEEPA rates they were previously paying.

3

Stronger Legal Foundation

Section 122 is explicitly a trade provision designed for tariff actions. Unlike IEEPA, its authority to impose duties has not been challenged by the courts. However, some trade attorneys have raised questions about whether the administration's use of Section 122 meets the statute's specific requirements around balance-of-payments emergencies.

For importers, the transition from IEEPA to Section 122 means two things simultaneously: your future tariff rate may be lower (capped at 15% vs. the 25–50% under IEEPA), and your past IEEPA overpayments are recoverable. This is a rare situation where importers can benefit on both sides of the equation — but only if they take action to file refund claims.

Navigating the New Tariff Landscape?

Miami Alliance 3PL helps importers adapt to shifting trade policy with flexible warehousing, strategic inventory positioning, and documentation support for tariff compliance and refund claims.

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What Every Importer Should Do Right Now

The FedEx lawsuit should be a wake-up call. If a company with FedEx's resources and legal team is filing immediately, every importer should be treating this with the same urgency. Here are the concrete steps you need to take:

1

Audit Every Import Entry from January 2025 Through February 20, 2026

Pull every entry summary from the IEEPA tariff period. Identify each entry where duties were assessed under IEEPA authority. Look for HTS codes and duty lines referencing IEEPA executive orders, reciprocal tariff proclamations, and country-specific IEEPA surcharges. Your customs broker should be able to generate a filtered report from ACE showing IEEPA-specific assessments. Calculate the total dollar amount of IEEPA duties paid across all entries.

2

Determine the Liquidation Status of Each Entry

For each entry, determine whether it has been liquidated (finalized) by CBP or remains unliquidated (open). This determines which refund mechanism you use. CBP typically liquidates entries 314 days after the entry date, but extensions are common. Check entry status in ACE or ask your customs broker to run a liquidation status report. Separate your entries into two lists: unliquidated (for PSC filing) and liquidated (for protest filing).

3

File Post Summary Corrections for Unliquidated Entries

For entries that have not yet been liquidated, instruct your customs broker to file a Post Summary Correction (PSC) through ACE. The PSC amends the original entry summary to remove the IEEPA duty assessment. When CBP liquidates the corrected entry, the overpayment is refunded. The deadline is 300 days from the entry date or 15 days before scheduled liquidation — whichever comes first. Do not wait. File PSCs on your unliquidated entries as soon as possible.

4

File Administrative Protests for Liquidated Entries

For entries that have already been liquidated, your customs broker or trade attorney must file a CBP Administrative Protest (Form 19) at the port of entry within 180 days of the liquidation date. The protest must include the entry summary, proof of IEEPA duty payment, and a legal basis citing the Supreme Court ruling. If the protest is approved, CBP issues a refund plus interest. If denied, you can appeal to the Court of International Trade within 180 days.

5

Engage a Trade Attorney for Large or Complex Claims

If your IEEPA duty exposure exceeds $500,000, or if you have entries with complicated multi-authority assessments (IEEPA plus Section 301, for example), consult a trade attorney. An attorney can advise on whether filing a lawsuit in the Court of International Trade — similar to what FedEx has done — would accelerate your recovery. For smaller claims, the administrative PSC and protest process through your customs broker is typically sufficient.

6

Track Every Filing and Monitor Deadlines

Create a tracking spreadsheet for every PSC and protest you file, including entry numbers, filing dates, amounts claimed, and current status. Monitor ACE for PSC processing updates and liquidation notices. For protests, CBP has up to two years to issue a decision, but given the expected volume, processing may take longer. Follow up with your broker monthly. Do not let any deadline pass without action.

Do Not Wait for FedEx or CBP to Act for You: Some importers are assuming that the government will proactively issue mass refunds or that the FedEx lawsuit will create automatic relief for everyone. Neither is guaranteed. The safe approach is to file your own claims now. If CBP issues mass relief later, your individual filings become moot. If they do not, you have protected your rights. Missing your filing deadlines means losing your refund permanently.

How Your 3PL Partner Helps You Recover Duties

Filing IEEPA refund claims requires one thing above all else: organized, complete import documentation. Every PSC and protest depends on being able to tie specific entry numbers to specific IEEPA duty payments with accurate dollar amounts. This is where your 3PL warehouse partner becomes invaluable.

Detailed Receiving Records

Every shipment arriving at a 3PL warehouse is logged with entry numbers, container numbers, arrival dates, quantities, and product descriptions. These receiving logs create a parallel documentation trail that helps you reconcile CBP entry data against physical goods received. When you need to prove that a specific import entry was assessed IEEPA duties and the goods were actually imported, your 3PL's records provide critical corroboration.

Entry Document Archives

Many 3PL operations retain copies of entry summaries, commercial invoices, packing lists, and bills of lading as part of their standard receiving process. If your own records are incomplete — or if your customs broker's files are difficult to access on short notice — your 3PL's archives may contain the documents you need to assemble your refund claim quickly.

Customs Broker Coordination

A 3PL that handles imports regularly has established relationships with customs brokers who understand the PSC and protest filing process. Your warehouse partner can facilitate filings, help coordinate documentation assembly, and ensure your broker has access to the warehouse-side records needed to complete filings efficiently and accurately.

Flexible Storage During Tariff Transitions

The shift from IEEPA to Section 122 creates uncertainty about future tariff rates. A 3PL with flexible warehousing capacity allows you to scale inventory up or down as trade policy evolves — stockpiling goods when rates favor pre-buying, or reducing inventory when the outlook is unclear. Miami's proximity to PortMiami and the FTZ (Foreign Trade Zone) system adds additional tariff management flexibility.

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Miami Alliance 3PL Advantage: We maintain detailed digital records for every shipment we receive, including entry summaries, bills of lading, receiving timestamps, and inventory logs. Our team can help you pull records for any shipment that passed through our facility during the IEEPA tariff period. We also coordinate directly with customs brokers to streamline the documentation process for PSC filings and protests. Contact us to start assembling your refund documentation.

Frequently Asked Questions

Why did FedEx sue the government instead of filing administrative refund claims?

FedEx likely chose to file a lawsuit for several reasons. First, the amounts involved are extremely large — potentially hundreds of millions of dollars — which justifies the cost and complexity of litigation. Second, a lawsuit forces the government to respond on a court-mandated timeline, rather than the slower administrative process. Third, FedEx's case creates legal precedent that strengthens the position of every other importer seeking IEEPA refunds. For most importers, the administrative PSC and protest process through your customs broker is the appropriate path. Lawsuits are typically reserved for very large claims or cases where CBP has denied a protest.

Can I get a refund if I am a small business or low-volume importer?

Yes. The right to a refund applies to every importer of record who paid IEEPA duties, regardless of business size or import volume. Whether you paid $5,000 or $50 million in IEEPA duties, you are entitled to a full refund plus interest. The filing process is the same: PSC for unliquidated entries, protest for liquidated entries. Your customs broker handles the actual filing. If you do not have a customs broker relationship, contact us and we can connect you with qualified brokers who are handling IEEPA refund claims.

How much money can I realistically expect to recover?

Your refund amount equals the total IEEPA duties you paid, plus interest accrued from the date of payment. To calculate your potential recovery: multiply your import value for each entry by the IEEPA tariff rate that was applied. For example, if you imported $100,000 per month in goods subject to a 20% IEEPA tariff over 12 months, your refund would be approximately $240,000 plus interest. Your customs broker can generate an exact figure from your entry records.

What happens if I miss the filing deadline?

If you miss the deadline, you permanently forfeit your right to a refund on that entry. There are no extensions, grace periods, or exceptions. The 180-day protest window and 300-day PSC window are hard deadlines established by federal law. This is why immediate action is critical. Your earliest IEEPA entries from January and February 2025 may already have tight deadlines approaching. Audit your records and begin filing now.

Does the FedEx lawsuit affect the Section 122 tariff I am paying now?

No. The FedEx lawsuit concerns only duties paid under IEEPA authority, which the Supreme Court declared unconstitutional. The Section 122 tariff (15% global) that took effect on February 24, 2026, is based on a different legal authority and is not affected by the IEEPA ruling or the FedEx lawsuit. You are required to pay Section 122 duties on current imports. The refund claims apply exclusively to past IEEPA payments.