Costco sues the Trump admin over tariffs — wants 'full refund' for costs it incurred

The rising prices and costs triggered by Donald Trump's emergency tariffs have disrupted the everyday lives of Americans and the revenues of businesses across the country. One of those is major retailer Costco, which is seeking a full refund for all the costs it incurred if the Supreme Court rules the sweeping duties illegal. In a suit filed in the Court of International Trade, Costco argued that it was improperly required to pay duties on imported goods and urged the court to consider all tariffs collected under the International Emergency Economic Powers Act unlawful. The company said it was abiding by a deadline to file the case to make sure it gets the refunds, in case the Supreme Court rules against the administration.

In its suit filed over the Thanksgiving holiday, Costco argued that President Trump improperly used the International Emergency Economic Powers Act (IEEPA) to impose tariffs on goods from China, Mexico, Canada, and several other countries, as the statute doesn't allow the administration to raise or create tariffs. Earlier this year, two lower courts ruled that the president exceeded his authority by using emergency powers to impose tariffs, without congressional approval, and the case now sits with the Supreme Court, which could soon strike down the tariffs, necessitating refunds to be issued to companies that paid the hefty duties. Thus, Costco has filed the case to secure its share of the refunds, as per NBC news.

Lawyers for Costco argued that a "separate action is necessary" as a refund is not guaranteed in the absence of their own judgment and judicial relief, BBC reported. The retailer has further asked the court to declare the tariff orders unlawful and block Customs and Border Protection from imposing them on its shipments going forward. Costco has urged the court to order the government to refund all the duties that the company has already paid under the tariff program.

While Costco hasn't put a number on the expected refunds, BBC noted that trade data from the U.S. customs agency shows importers like Costco have already paid about $90 billion in IEEPA-related tariffs by the end of September. Costco said it faced a deadline of December 15 to file the suit in order to secure the possible refunds. The company said that the government will begin finalizing its import entries by December 15, and once the duty amount is locked, importers may lose the ability to challenge or recover those duties.

With this, Costco has become the biggest company to sue the Trump administration over the tariffs. Earlier this year, Learning Resources, Inc., a maker of educational toys and classroom products, filed a similar suit arguing that the tariffs would push its annual duty bill higher. Later, V.O.S. selected a wine and spirits importer that won major rulings that struck down the tariff orders, pushing the issue to the Supreme Court, Fox News reported. Other companies that have taken similar action include cosmetics giant Revlon and Japanese automaker Kawasaki Motors.

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