Costco is bringing a high-profile face to its board — and it's not good news for Trump
Costco is suing the Trump administration, seeking a full refund for the costs incurred on tariffs that are already facing legal scrutiny. The retail giant is struggling to keep prices low due to the levy, which impacts its imports. This move has already triggered a mass cancellation of Costco memberships by Trump supporters, and the retailer faces a boycott. But instead of backing down, Costco has gone a step further and invited former Biden administration Commerce Department Secretary Gina Raimondo to join its board of directors, CNBC reported.
“We are very pleased to nominate Secretary Raimondo for election to our Board,” Costco Chairman Tony James stated. “Her vast experience in global business, politics, and international security at the highest level will add an important dimension to our current expertise,” James said. “We look forward to her contributions.” Raimondo was Rhode Island's governor from 2015 to 2021 and the 40th Secretary of Commerce from 2021 to 2025. She has experience in venture capital and started her political career in 2010 as the State Treasurer of Rhode Island. Presently, she is a distinguished fellow of the Council on Foreign Relations.
The Trump administration's arguments over the legitimacy of tariffs imposed under the International Emergency Economic Powers Act were recently heard by the Supreme Court. Costco has filed a lawsuit asking the U.S. Court of International Trade to reimburse the duties it has already paid, claiming that if the Supreme Court rules that the levies were illegal, it may find it difficult to recover the money without quick action. Costco's complaint has been combined with related cases from 19 other businesses by the Court of International Trade.
Trump claims tariffs will rebuild the American economy and even replace income tax, while experts express skepticism. The court is reviewing whether Trump exceeded his authority under the International Economic Emergency Powers Act of 1977 to impose these tariffs. During the hearings, some conservative justices raised concerns about the broad application of Trump's tariffs and the potential abdication of Congressional power.
The White House is preparing for a potential Supreme Court ruling, with economists indicating that tariffs will persist regardless of the outcome. Plans are underway to explore alternative tariff options due to concerns of a legal overturn, including various statutory provisions such as Sections 338, 301, 232, 2011, and 122. These sections offer differing levels of authority for imposing tariffs, some requiring further investigations or congressional approval, underscoring the administration's readiness to adapt its tariff strategies.
According to CNBC, the government can still carry out its tariff program regardless of the Supreme Court's impending ruling, according to Treasury Secretary Scott Bessent. He cited several provisions of the 1962 Trade Act that provide the president substantial control over import taxes.“We can recreate the exact tariff structure with [sections] 301, with 232, with 122,” he stated while being interviewed at The New York Times DealBook Summit. Meanwhile, Trump continues to promote his affordability agenda by claiming that tariffs have generated profitable revenue, which wasn't possible in decades.
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