Why Costco is suing the Trump administration
What's the story
Costco has filed a lawsuit against the Trump administration, seeking a full refund of the tariffs it paid this year. The lawsuit was filed in the US Court of International Trade and comes after President Donald Trump imposed "reciprocal" and "fentanyl" tariffs earlier this year. These tariffs were imposed under the International Emergency Economic Powers Act on imports from most countries across the globe.
Legal action
Costco's lawsuit seeks to prevent further tariff collection
The lawsuit also seeks to stop the Trump administration from collecting these import duties while a Supreme Court case is pending. Costco argues that it could lose the money it has already paid in tariffs, even if the Supreme Court ultimately upholds lower court rulings declaring those duties illegal.
Urgency
Costco highlights deadline for tariff refund
Costco's lawsuit highlights a looming December 15 deadline that could prevent refunds on already paid tariffs. The company did not specify how much money it thinks should be refunded. The suit also notes that US Customs and Border Protection denied its request to extend this liquidation date, which is the final computation of tariffs assessed on imported items.
Industry response
Other companies have filed similar lawsuits
Several other companies have also filed similar lawsuits to protect their right to potential refunds. This is in case the Supreme Court rules against Trump's reciprocal tariffs on imports from several US trading partners and fentanyl tariffs on products from Canada, China, and Mexico. The Federal Circuit had previously ruled that Trump did not have the power to impose these tariffs.
Judicial scrutiny
Supreme Court's stance on Trump's tariff powers
During oral arguments on November 5, most of the Supreme Court's nine justices appeared skeptical about Trump's power to impose these tariffs. The court has expedited the administration's appeal of lower court rulings but it remains unclear when or how it will decide this dispute. Costco's lawsuit states that even if IEEPA duties and underlying executive orders are deemed unlawful by the Supreme Court, importers who paid IEEPA duties aren't guaranteed a refund without their own judgment and judicial relief.