On Wednesday, Judge Richard Eaton of the US Court of International Trade ordered US Customs and Border Protection (CBP) to issue refunds tied to tariffs imposed under the International Emergency Economic Powers Act (IEEPA), after the Supreme Court struck down that legal basis last month. According to the Associated Press, Eaton wrote that “all importers of record whose entries were subject to IEEPA duties are entitled to the benefit” of the Supreme Court ruling.
The dispute stems from the Supreme Court’s 20 February 2026 decision in Learning Resources, Inc. v. Trump, which held that IEEPA does not authorise the president to impose tariffs.
However, the high court did not set out a refund mechanism. That gap has triggered a wave of litigation and competing interpretations of how quickly — and how broadly — repayments should be made.
FedEx: any refunds recovered will be passed back to customers
FedEx is among the companies seeking repayment and has made a public commitment about what it would do with any money recovered.
In a statement published on 26 February 2026, FedEx said it would refund customers if it receives repayments from the government.
“If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” the company said, adding that timing and process depend on future direction “from the government and the court,” as reported by the Associated Press.
FedEx has also told customers that, following the Supreme Court ruling, certain IEEPA-based duties have been terminated, while operational details depend on how authorities implement the decision.
Trump administration prepares a short-term replacement tariff: 15% rate expected
While the refund fight escalates, the administration is already attempting to replace the struck-down regime.
US Treasury Secretary Scott Bessent said President Donald Trump’s newly announced global tariff is “likely” to rise from 10% to 15% sometime this week, according to Reuters. Reuters reported that the replacement measure is being imposed under Section 122 of the Trade Act of 1974 and can last 150 days unless Congress approves an extension.
US officials say they may reintroduce tariffs through two established trade routes: one targeting countries accused of unfair trade, and another allowing import restrictions on “national security” grounds. These processes take longer than an emergency order, but they are generally seen as harder to challenge in court.
