Costco has initiated a lawsuit against the U.S. government, seeking a full refund of import duties if the Supreme Court determines that former President Donald Trump exceeded his authority in imposing tariffs without congressional approval. The lawsuit asks a federal trade court to declare Trump’s tariffs illegal, which he did under the International Emergency Economic Powers Act (IEEPA).
Two lower courts have already found that Trump overstepped his authority by invoking emergency powers to impose these tariffs. The case is now before the Supreme Court, with Costco and other companies aiming to secure their rights to refunds in the event that the justices invalidate the tariffs.
In its lawsuit, filed around Thanksgiving, Costco stated that the tariffs have negatively impacted its business operations and raised concerns about the prospect of securing refunds even if the Supreme Court upholds previous rulings against the tariffs. The company’s legal team indicated that a “separate action is necessary,” as refunds may not be assured without a formal judicial ruling in their favor.
While Costco did not specify the total amount sought in the lawsuit, U.S. trade data reveals that importers like Costco have paid approximately $90 billion in IEEPA-related tariffs as of late September. The retailer filed its suit in the U.S. Court of International Trade before a deadline of December 15, 2025, which, if surpassed, could complicate its ability to recover any funds.
A prior ruling by the U.S. Court of International Trade declared the tariffs unlawful, a decision later upheld by the U.S. Court of Appeals. During a recent Supreme Court hearing, justices expressed skepticism regarding the president’s authority to impose tariffs without legislative approval. Meanwhile, Trump administration lawyers maintain that emergency powers grant the president this authority and warned that an adverse ruling could hinder negotiations and result in significant losses for the treasury.
Source: https://www.bbc.com/news/articles/c3r78peyzzlo?at_medium=RSS&at_campaign=rss