FedEx Sues U.S. Government for Tariff Refund Following Supreme Court Ruling
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy UPS?
Source: CNBC
- Lawsuit Initiation: FedEx swiftly filed a lawsuit against the U.S. government seeking a full refund of tariffs paid after the Supreme Court ruled last Friday that tariffs imposed unilaterally by President Trump were illegal, marking it as the first major American company to take such action.
- Tariff Background: The tariffs, imposed last year under the International Emergency Economic Powers Act on most U.S. trading partners, were confirmed as illegal by the Supreme Court, making FedEx's lawsuit a direct response to this ruling.
- Lawsuit Details: The 11-page complaint names U.S. Customs and Border Protection and its commissioner, Rodney Scott, as defendants, although it does not disclose the specific amount FedEx has paid in IEEPA tariffs since their imposition last year.
- Industry Impact: This lawsuit may set a legal precedent for other companies, particularly those like Costco that have already filed claims in the Court of International Trade, potentially accelerating refund requests for Trump-era tariffs and influencing compliance costs across the industry.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to fall
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 116.730
Low
80.00
Averages
107.06
High
126.00
Current: 116.730
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FedEx Sues U.S. Government for Tariff Refund Following Supreme Court Ruling
- Lawsuit Initiation: FedEx swiftly filed a lawsuit against the U.S. government seeking a full refund of tariffs paid after the Supreme Court ruled last Friday that tariffs imposed unilaterally by President Trump were illegal, marking it as the first major American company to take such action.
- Tariff Background: The tariffs, imposed last year under the International Emergency Economic Powers Act on most U.S. trading partners, were confirmed as illegal by the Supreme Court, making FedEx's lawsuit a direct response to this ruling.
- Lawsuit Details: The 11-page complaint names U.S. Customs and Border Protection and its commissioner, Rodney Scott, as defendants, although it does not disclose the specific amount FedEx has paid in IEEPA tariffs since their imposition last year.
- Industry Impact: This lawsuit may set a legal precedent for other companies, particularly those like Costco that have already filed claims in the Court of International Trade, potentially accelerating refund requests for Trump-era tariffs and influencing compliance costs across the industry.
See More
Violence Erupts in Mexico Following Drug Lord's Death
- Drug Lord Killed: The Mexican military, aided by U.S. intelligence, killed drug cartel leader Nemesio Oseguera, resulting in widespread violence across multiple states, which poses severe challenges to public safety and infrastructure.
- Trade Disruption Risk: Logistics companies warn that continued violence could dramatically impact trade between the U.S. and Mexico, particularly affecting freight operations on key transport routes, thereby straining economic relations between the two countries.
- Flight Cancellations Impact: Major U.S. airlines, including American Airlines and Southwest Airlines, canceled numerous flights due to the violence, affecting approximately 50% of air freight, which raises the risk of delays and increased costs for shipping.
- Port Operations Disrupted: The Port of Manzanillo, Mexico's busiest container port, has resumed normal operations, but ongoing road blockades due to violence continue to challenge cargo movement, impacting container traffic significantly.
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MercadoLibre Reports 39% Revenue Growth in Q3 2025
- Significant Revenue Growth: MercadoLibre's Q3 2025 revenue reached approximately $7.41 billion, marking a 39% year-over-year increase, driven by record buyer activity and over 40% growth in fintech total payment volume, highlighting the company's robust performance in the Latin American e-commerce and fintech sectors.
- Market Share Defense: The company is deepening user engagement and defending market share through strategic investments in last-mile delivery, free-shipping programs, and credit products, especially as e-commerce penetration in Latin America remains significantly below developed market levels, providing substantial growth runway.
- Rising Cost Pressures: Despite strong revenue growth, operating expenses have increased faster than revenues, resulting in approximately 200 basis points of margin compression, reflecting the cost challenges the company faces during its expansion, which could impact future profitability.
- Conflicted Investor Sentiment: While the revenue performance is impressive, investors are concerned about the rising operating expenses; with MercadoLibre's stock price nearing $2,000, the high cost of options contracts complicates trading, necessitating careful risk-reward assessments by investors.
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UPS Stock Rebounds with Optimistic Profit Outlook
- Stock Rebound: UPS stock has surged over 24% in the past three months, significantly outperforming the S&P 500, although it remains down about 37% since early 2023, indicating growing market confidence in its recovery.
- Profitability Improvement: UPS has achieved approximately $3.5 billion in cost savings through network reconfiguration and expects to save an additional $3 billion in 2026, suggesting that as profitability improves, stock prices are likely to align with earnings growth.
- Healthcare Logistics Expansion: The $1.6 billion acquisition of Andleur Healthcare Group positions UPS to become the leading provider of complex healthcare logistics, while its penetration in the small to medium-sized business market has increased to 31.8%, enhancing its competitive edge.
- Stable Dividend Returns: UPS anticipates paying $5.4 billion in dividends in 2026, with a target free cash flow of $6.5 billion, and a dividend yield around 6% makes the stock attractive for investors seeking reliable returns, boosting its appeal.
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Supreme Court Strikes Down Trump's Tariffs
- Tariff Policy Shift: The U.S. Supreme Court's 6-3 ruling overturns Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), determining he exceeded his authority, which may significantly impact future trade policies and corporate cost structures.
- Positive Market Reaction: Following the Supreme Court's decision, both the S&P 500 and Dow Jones Industrial Average saw a rapid rebound, reflecting investor optimism regarding the removal of tariffs, although this surge is likely to be short-lived.
- Financial Impact on Businesses: Companies may seek refunds totaling around $175 billion due to the ruling, potentially providing additional liquidity to businesses, although specific guidance on refunds remains unclear, which could stimulate economic recovery.
- Future Tariff Risks: The Trump administration plans to reimpose tariffs through alternative legislative authorizations, such as Section 232 and Section 301 of the Trade Expansion Act, which may lead to ongoing tariff uncertainty for businesses and affect their international trade strategies.
See More
Supreme Court Strikes Down Trump's Tariffs, Market Reacts
- Tariff Policy Shift: The U.S. Supreme Court's 6-3 ruling overturns Trump's tariffs under the International Emergency Economic Powers Act, determining he exceeded his authority, potentially allowing U.S. companies to seek around $175 billion in refunds, stimulating economic growth.
- Market Reaction: Following the Supreme Court's decision, the S&P 500 and Dow Jones Industrial Average rose by 0.69% and 0.47%, respectively, reflecting initial investor optimism about the tariff removal, although analysts caution that this surge may be short-lived.
- Inflation Expectations: The removal of tariffs could alleviate inflationary pressures and increase the likelihood of the Federal Reserve lowering interest rates further, providing additional momentum for the stock market, despite ongoing uncertainties regarding future tariff policies.
- Future Tariff Risks: Although the Supreme Court's ruling limits Trump's tariff authority, the administration may utilize other legislative avenues to reimpose similar tariffs, indicating that uncertainty in trade policy will persist and could impact market stability.
See More
FedEx Sues U.S. Government for Tariff Refund Following Supreme Court Ruling
- Lawsuit Initiation: FedEx swiftly filed a lawsuit against the U.S. government seeking a full refund of tariffs paid after the Supreme Court ruled last Friday that tariffs imposed unilaterally by President Trump were illegal, marking it as the first major American company to take such action.
- Tariff Background: The tariffs, imposed last year under the International Emergency Economic Powers Act on most U.S. trading partners, were confirmed as illegal by the Supreme Court, making FedEx's lawsuit a direct response to this ruling.
- Lawsuit Details: The 11-page complaint names U.S. Customs and Border Protection and its commissioner, Rodney Scott, as defendants, although it does not disclose the specific amount FedEx has paid in IEEPA tariffs since their imposition last year.
- Industry Impact: This lawsuit may set a legal precedent for other companies, particularly those like Costco that have already filed claims in the Court of International Trade, potentially accelerating refund requests for Trump-era tariffs and influencing compliance costs across the industry.
See More
Violence Erupts in Mexico Following Drug Lord's Death
- Drug Lord Killed: The Mexican military, aided by U.S. intelligence, killed drug cartel leader Nemesio Oseguera, resulting in widespread violence across multiple states, which poses severe challenges to public safety and infrastructure.
- Trade Disruption Risk: Logistics companies warn that continued violence could dramatically impact trade between the U.S. and Mexico, particularly affecting freight operations on key transport routes, thereby straining economic relations between the two countries.
- Flight Cancellations Impact: Major U.S. airlines, including American Airlines and Southwest Airlines, canceled numerous flights due to the violence, affecting approximately 50% of air freight, which raises the risk of delays and increased costs for shipping.
- Port Operations Disrupted: The Port of Manzanillo, Mexico's busiest container port, has resumed normal operations, but ongoing road blockades due to violence continue to challenge cargo movement, impacting container traffic significantly.
See More
MercadoLibre Reports 39% Revenue Growth in Q3 2025
- Significant Revenue Growth: MercadoLibre's Q3 2025 revenue reached approximately $7.41 billion, marking a 39% year-over-year increase, driven by record buyer activity and over 40% growth in fintech total payment volume, highlighting the company's robust performance in the Latin American e-commerce and fintech sectors.
- Market Share Defense: The company is deepening user engagement and defending market share through strategic investments in last-mile delivery, free-shipping programs, and credit products, especially as e-commerce penetration in Latin America remains significantly below developed market levels, providing substantial growth runway.
- Rising Cost Pressures: Despite strong revenue growth, operating expenses have increased faster than revenues, resulting in approximately 200 basis points of margin compression, reflecting the cost challenges the company faces during its expansion, which could impact future profitability.
- Conflicted Investor Sentiment: While the revenue performance is impressive, investors are concerned about the rising operating expenses; with MercadoLibre's stock price nearing $2,000, the high cost of options contracts complicates trading, necessitating careful risk-reward assessments by investors.
See More
UPS Stock Rebounds with Optimistic Profit Outlook
- Stock Rebound: UPS stock has surged over 24% in the past three months, significantly outperforming the S&P 500, although it remains down about 37% since early 2023, indicating growing market confidence in its recovery.
- Profitability Improvement: UPS has achieved approximately $3.5 billion in cost savings through network reconfiguration and expects to save an additional $3 billion in 2026, suggesting that as profitability improves, stock prices are likely to align with earnings growth.
- Healthcare Logistics Expansion: The $1.6 billion acquisition of Andleur Healthcare Group positions UPS to become the leading provider of complex healthcare logistics, while its penetration in the small to medium-sized business market has increased to 31.8%, enhancing its competitive edge.
- Stable Dividend Returns: UPS anticipates paying $5.4 billion in dividends in 2026, with a target free cash flow of $6.5 billion, and a dividend yield around 6% makes the stock attractive for investors seeking reliable returns, boosting its appeal.
See More
Supreme Court Strikes Down Trump's Tariffs
- Tariff Policy Shift: The U.S. Supreme Court's 6-3 ruling overturns Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), determining he exceeded his authority, which may significantly impact future trade policies and corporate cost structures.
- Positive Market Reaction: Following the Supreme Court's decision, both the S&P 500 and Dow Jones Industrial Average saw a rapid rebound, reflecting investor optimism regarding the removal of tariffs, although this surge is likely to be short-lived.
- Financial Impact on Businesses: Companies may seek refunds totaling around $175 billion due to the ruling, potentially providing additional liquidity to businesses, although specific guidance on refunds remains unclear, which could stimulate economic recovery.
- Future Tariff Risks: The Trump administration plans to reimpose tariffs through alternative legislative authorizations, such as Section 232 and Section 301 of the Trade Expansion Act, which may lead to ongoing tariff uncertainty for businesses and affect their international trade strategies.
See More
Supreme Court Strikes Down Trump's Tariffs, Market Reacts
- Tariff Policy Shift: The U.S. Supreme Court's 6-3 ruling overturns Trump's tariffs under the International Emergency Economic Powers Act, determining he exceeded his authority, potentially allowing U.S. companies to seek around $175 billion in refunds, stimulating economic growth.
- Market Reaction: Following the Supreme Court's decision, the S&P 500 and Dow Jones Industrial Average rose by 0.69% and 0.47%, respectively, reflecting initial investor optimism about the tariff removal, although analysts caution that this surge may be short-lived.
- Inflation Expectations: The removal of tariffs could alleviate inflationary pressures and increase the likelihood of the Federal Reserve lowering interest rates further, providing additional momentum for the stock market, despite ongoing uncertainties regarding future tariff policies.
- Future Tariff Risks: Although the Supreme Court's ruling limits Trump's tariff authority, the administration may utilize other legislative avenues to reimpose similar tariffs, indicating that uncertainty in trade policy will persist and could impact market stability.
See More
