FedEx's Refund Policy
FedEx announced it will return any tariff refunds it receives to customers who paid those charges, as it pursues compensation from the federal government for tariffs ruled illegal.
The shipping company stated its intent to refund shippers and consumers who originally bore the costs, with the process depending on future government and court guidance.
FedEx emphasized transparency and directed customers to its tariff-related webpage for updates.
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.
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.
Supreme Court Ruling on IEEPA Tariffs
The Supreme Court struck down key portions of President Donald Trump's trade agenda, ruling that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal because the law did not authorize the president to impose such import taxes.
The decision did not affect tariffs imposed under other legal authorities, but the White House has indicated plans for alternative tariffs to offset lost revenue.
Treasury Secretary Scott Bessent noted the Treasury has funds for potential refunds, though the process may be time-consuming.
Tariff Revenue and Refund Estimates
While in effect, IEEPA tariffs generated more than $150 billion in revenue, potentially subject to refunds according to various estimates.
The Tax Foundation estimated $150 billion, Penn-Wharton Budget Model $175 billion, and JPMorgan a range of $150 billion to $200 billion.
The case has been remanded to lower courts, where agreements on refund formats may emerge, or companies can pursue claims via the U.S. Court of International Trade or U.S. Customs and Border Protection.
Tariff Burden Distribution
A Federal Reserve Bank of New York study found U.S. businesses and consumers bore 86% of the tariff burden as of November 2025, with foreign exporters absorbing 14%.
This aligns with Congressional Budget Office findings that foreign exporters absorbed about 5%, leaving 95% on U.S. firms and consumers.
FedEx and over 1,000 companies have filed suits for refunds in the Court of International Trade.
