Costco is pursuing legal action against the Trump administration regarding the tariffs imposed by the White House. The retail chain claims that the administration has exceeded its executive authority in implementing these tariffs and is requesting a refund if the tariffs are ultimately deemed unconstitutional. The lawsuit was filed in the Court of International Trade, where Costco asserts that the Trump administration misapplied the International Emergency Economic Powers Act (IEEPA) as a basis for the tariffs.
Costco’s lawsuit quotes the IEEPA, stating that it grants the president specific powers that can only be exercised in response to an unusual and extraordinary threat following a declared national emergency. Notably, the law does not mention tariffs or equivalent terms. In November, the Supreme Court heard arguments related to Trump’s tariffs, during which justices expressed skepticism about the argument that the IEEPA allowed for such tariffs. Chief Justice John Roberts pointed out that imposing taxes on Americans is a core power of Congress.
With the Supreme Court expected to render a decision on the tariffs in the spring, Costco argues that its case is urgent. Importantly, if the Supreme Court finds the tariffs unconstitutional, there is no guarantee that importers will be entitled to refunds for tariffs that were collected unlawfully. Customs and Border Protection (CBP) typically finalizes the tariff amount owed by importers about 314 days after the goods enter the country. Courts have indicated that importers may lack the legal means to recover tariffs that have been liquidated, even if those tariffs are later determined to be illegal.
Costco seeks not only to halt the liquidation process but also to have the Court of International Trade declare the tariffs illegal, prevent further collection of duties, and mandate refunds for any tariffs paid. CBP did not respond to requests for comment. In the previous fiscal year, tariff collections reached $195 billion, significantly up from $118 billion the year before, with much of Costco’s sales in the U.S. being imports, largely from China, Mexico, and Canada.
Source: https://www.theguardian.com/us-news/2025/dec/02/costco-sues-trump-tariffs