Retail giant Costco is suing the Trump Administration, seeking a ‘full refund’ of import duties that the company says it paid due to President Donald Trump’s global tariffs.
Costco Sues The Trump Administration
The lawsuit was filed at the U.S. Court of International Trade on November 28. It argues that the Trump administration’s tariffs were illegally implemented, as the president has exceeded his executive authority in imposing the tariffs. If they are found to be unconstitutional, Costco claims that it is entitled to a refund for the paid duties.
Trump’s tariffs were first imposed in April, with its implementation citing the 1977 International Emergency Economics Act (IEEPA). The IEEPA gives the president the power to exercise “an array of economic powers ‘to deal with any unusual and extraordinary threat.’”
Costco’s lawsuit read, “IEEPA grants the president certain power, but they ‘may only be exercised to deal with an unusual and extraordinary threat with respect to which a national emergency has been declared for purposes of this chapter and may not be exercised for any other purposes.’” The wholesaler added that the law “does not use the word ‘tariff’ or any term of equivalent meaning.”
‘Unlawfully Collected Tariffs’
Trump’s tariffs were first ruled unlawful in May, which was later affirmed by the US Court of Appeals. At last month’s hearings, the president’s ability to implement tariffs without congressional approval was met with skepticism by Supreme Court judges.
It won’t be until spring that the Supreme Court makes its decision on the tariffs, but Costco has made it clear in its lawsuit that this is an urgent matter. In spite of whatever ruling the supreme court determines, it is unsure if importers will receive any kind of compensation in the end. Depending on how much time has passed, importers may be unable to get a refund on the tariffs, as importers may lack the legal rights to recover the funds on goods that have already been liquidated by Customs and Border Protection.
For the 2025 fiscal year, the total tariff collection reached a massive $195 billion. Compared to 2024, that is an increase of $77 billion.
