By SCM STAFF CORRESPONDENT
WASHINGTON D.C. — The American government is facing a mutiny from some of the world’s biggest brands as a multi-billion dollar legal battle erupts over “illegal” border taxes.
Delivery giant FedEx has sensationally hauled the US government to court, demanding a “FULL REFUND” of every penny paid under controversial emergency trade duties.
They aren’t alone; retail king Costco and beauty titan Revlon have also joined the legal pile-on, leaving the US Treasury facing a potential black hole worth over $175 billion (£138bn).
The legal firestorm follows a bombshell ruling by the US Supreme Court last Friday, which declared that the President overstepped his authority.
The court ruled 6-3 that the International Emergency Economic Powers Act (IEEPA)—a law intended for sanctions—was wrongly used to slap massive tariffs on goods entering the country.
In a blistering lawsuit filed at the US Court of International Trade, FedEx didn’t mince words. The company is seeking a total rebate for what it calls “injury” caused by the taxes, which hit everything from electronics to everyday essentials.
”Plaintiffs seek for themselves a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States,” the legal filing states.
While FedEx hasn’t named its final price tag in the suit, the company previously warned investors that these trade policies would slash its profits by a staggering $1 billion this year alone.
For the British consumer, the fallout could be significant. With global supply chains intertwined, the “Tariff War” has been blamed for driving up prices on both sides of the Atlantic.
Now, the world’s biggest companies want their money back—with interest.
The drama traces back to early 2025, when the Trump administration invoked the 1977 IEEPA law to bypass Congress and impose sweeping tariffs on imports from China, Mexico, and Canada.
The White House claimed the move was necessary to fight the fentanyl crisis and trade deficits.
However, the Supreme Court has now pulled the rug out from under the policy, ruling that only Congress has the “power of the purse” to levy such taxes.
While the government has stopped collecting the duties as of this morning, the battle over the “mountain of cash” already sitting in the Treasury is just beginning.
Experts say hundreds of other firms are expected to join the queue for a payout, potentially triggering one of the largest government refunds in history.
