Wholesale retailer Costco is not into President Donald Trump’s tariffs. Just after Thanksgiving, the company filed a lawsuit alleging that some of these tariffs are unlawful.
Specifically, tariffs Trump established through a series of executive orders “invoked the International Emergency Economic Powers Act,” or IEEPA, per the suit. It said these tariffs were placed on goods from almost every foreign country. Companies like Costco ended up paying for these tariffs, and some expected to pass costs along to customers.
According to Costco legal team’s suit before the Court of International Trade, the IEEPA does not “clearly authorize” the president to set tariffs. On these grounds, the company is seeking a “full refund” for duties it has paid under the act as a result of Trump’s reciprocal tariff plan.
NBC News noted that Trump is the first president to use IEEPA to impose tariff duties and that lower courts have ruled against the administration’s use of the law. However, the tariffs have been kept in place while the conservative-leaning U.S. Supreme Court considers the legality of the president’s tariff agenda.
“In oral arguments in early November, justices appeared skeptical about the government’s case,” NBC News said. “Both conservative and liberal justices asked tough questions to Solicitor General D. John Sauer, though some of the conservatives seemed more sympathetic to his arguments.”
Costco’s filing said the retailer is bringing its own lawsuit because of a prior ruling about the legality of the tariffs, People magazine said. Indeed, several other companies have brought similar lawsuits against the Trump administration regarding its tariffs, but the outlet said Costco is “not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief,” per the filing.
Trump’s administration, on the other hand, defended the tariffs.
“The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact,” said White House spokesman Kush Desai in a statement. “The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”
Last week, Trump praised the tariffs himself in a Truth Social post.
“Tariffs have made our Country Rich, Strong, Powerful, and Safe. They have been successfully used by other Countries against us for Decades, but when it comes to Tariffs, and because of what I have set in place, WE HAVE ALL THE CARDS, and with a smart President, we always will! Wars have been stopped, and stronger relationships with other countries have been built, even though they are not allowed to rip off the United States anymore,” the president said.
Costco has argued that its suit regarding the tariffs is urgent because, even if the Supreme Court eventually rules the tariffs unconstitutional, if might not be able to get its money back, The Guardian reported. That’s because Customs and Border Protection – the federal agency that collects tariffs –finalizes the total amount of tariffs an importer owes 314 days after the goods enter the country and federal courts have warned that “importers may lack legal rights to recover refunds of tariffs for goods that have been liquidated,” even if the tariffs are deemed unlawful, The Guardian explained. CBP did not immediately respond to the Guardian’s request for comment, the outlet added. “
Total tariff collection in fiscal year 2025, which ended in September, soared to $195 billion, compared to $118 billion in fiscal year 2024, according to the Committee for a Responsible Federal Budget. Monthly custom duties went from $7 billion in January to $30 billion in September,” according to The Guardian. It said Costco has not disclosed how much it has paid in duties over the last year, though company has said that a third of its sales in the U.S. are imports from other countries.
In a Nov. 5 press release, the company said that it is coming off a year when sales were impacted by Hurricane Helene and port strikes. Still, it said net sales of $21.75 billion for the retail month of October were an increase of 8.6% from $20.03 billion last year.
The Supreme Court is expected to decide on the tariffs this spring.