Retail giant Costco has initiated a lawsuit against the United States government seeking a full refund of import duties associated with tariffs imposed by the Trump administration. This legal action precedes a Supreme Court review of the President's authority to levy such tariffs without explicit congressional approval.
Legal Background and Lower Court Rulings
The dispute centers on tariffs implemented under the International Emergency Economic Powers Act (IEEPA). Two lower courts have previously determined that the Trump administration exceeded its authority by utilizing emergency powers for these tariff impositions. In May, the U.S. Court of International Trade first ruled the tariffs unlawful, a decision later upheld by the U.S. Court of Appeals.
Costco's Legal Action and Concerns
Costco filed its lawsuit with the U.S. Court of International Trade, arguing for a declaration that the tariffs are illegal. The company cited adverse effects on its business due to the tariffs and expressed concern about securing refunds even if the Supreme Court affirms previous rulings. Legal representatives for Costco stated that a "separate action is necessary" to guarantee a refund. The suit was filed ahead of a December 15, 2025, deadline, after which recouping funds would become more challenging. The retailer has not disclosed the specific amount it seeks; however, U.S. customs data indicates importers have collectively paid approximately $90 billion in IEEPA-related tariffs as of late September.
Trump Administration's Arguments and Supreme Court Hearing
Lawyers representing the Trump administration have contended that emergency powers under the IEEPA grant the president the authority to impose global tariffs. The administration has warned that an unfavorable ruling could restrict future negotiation capabilities with other countries and result in the loss of billions of dollars already collected by the Treasury. White House spokesperson Kush Desai commented on the situation, stating, "The economic consequences of the failure to uphold President Trump's lawful tariffs are enormous and this suit highlights that fact. The White House looks forward to the Supreme Court's speedy and proper resolution of this matter." During a Supreme Court hearing last month, judges reportedly expressed skepticism regarding the president's authority to impose these levies without congressional consent. Former President Trump had previously stated that the U.S. was collecting "Trillions of Dollars" in tariffs and proposed a dividend payment to citizens.