FedEx has announced it will return any tariff charges to customers if the Trump administration issues tariff refunds to the delivery giant.
“If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” FedEx said in a statement on Thursday. “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 is a PPAI trusted partner, which means PPAI members get discounted rates on express, ground and freight shipping services.
FedEx said it will reimburse customers days after it filed a lawsuit with the U.S. Court of International Trade demanding that the Trump administration offer a “full refund” of all payments the company made under a set of tariff policies that were struck down by the U.S. Supreme Court.
“FedEx has taken necessary action to protect the company’s rights as an importer of record to seek duty refunds from U.S. Customs and Border Protection following the U.S. Supreme Court’s ruling that the tariffs issued under the International Emergency Economic Powers Act (IEEPA) are unlawful,” the company said in a statement to CBS News.
- Since that decision, several companies, such as Dyson and L’Oreal, have filed lawsuits seeking tariff refunds.
Small businesses behind the successful challenge to President Donald Trump’s emergency tariffs asked the Federal Circuit Tuesday to immediately issue its mandate so the lower U.S. Court of International Trade can consider how to order the government to issue refunds for importers that paid the unlawful duties, Law360 reported.
Tariffs Still In Effect
Meanwhile, the Trump administration has confirmed that tariff policy will continue by using alternate statutory tools, primarily Sections 122 and 301.
- Section 122 allows up to 10% tariffs, which went into effect on Tuesday, for approximately 150 days. This time-limited authority creates a defined planning window for importers of branded merchandise.
- Section 122 tariffs can only be extended by an act of Congress, making tariff policy a likely legislative issue this summer.
- The Trump administration also plans to use Section 301 investigations to sustain tariffs long term. These processes require hearings and public comment and can take up to a year, creating a formal opportunity for industry engagement.
PPAI will continue to advocate for predictable and balanced trade frameworks that support U.S. decoration, logistics and distribution jobs, says Alok Bhat, market economist and PPAI’s research and public affairs lead. After all, policy stability remains the core business priority for our industry.
“In coordination with our lobbying partner, Thorn Run Partners, we are reinforcing Capitol Hill messaging that trade predictability protects American jobs across decoration, logistics and distribution,” Bhat says, “and we are closely monitoring any congressional action related to tariff authority.”