Costco Sues Trump Administration, Demands Full Refund For Tariffs: Here's Why

By Chris Spiker From Daily Voice

Costco is suing the Trump administration as the Supreme Court considers whether its sweeping tariffs on imports are constitutional.

The wholesale retail giant filed its complaint in the US Court of International Trade on Friday, Nov. 28. Costco asked the judges to order the federal government to issue a full refund on the duties that the company has paid since President Donald Trump first imposed the tariffs in early 2025.

Costco is also requesting the court to declare Trump's duties unlawful under the International Emergency Economic Powers Act (IEEPA). Trump has used the 1977 law to bypass Congress and implement his broad "reciprocal" and "fentanyl" tariffs.

In late May, a three-judge panel on the Court of International Trade struck down the tariffs, adding that Trump improperly used "emergency powers" to enact them. The Trump administration has challenged that ruling and similar ones, with the Supreme Court hearing arguments in the appeals case in early November.

Costco said it faces a deadline of Monday, Dec. 15, to get a refund on the tariffs that it has already paid as it waits for the Supreme Court's final ruling.

"This separate action is necessary, however, because even if the IEEPA duties and underlying executive orders are held unlawful by the Supreme Court, importers that have paid IEEPA duties, including [Costco], are not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief," the company said in its lawsuit.

A Costco Wholesale location in East Lyme, CT.

Wikimedia Commons - JJBers

Costco is asking for the urgent decision because of a technical step in the customs process. The company said that Customs and Border Protection denied its request for an extension to "liquidation," which is the final calculation of tariff costs.

The retailer is among dozens of companies to file suits against the Trump administration to protect their chance at refunds if the Supreme Court ultimately rules against Trump's tariffs.

"This court and the [US Court of Appeals for the Federal Circuit] have cautioned that an importer may lack the legal right to recover refunds of duties for entries that have liquidated, even where the underlying legality of a tariff is later found to be unlawful," Costco's suit said.

During the first hearing in the case on Wednesday, Nov. 5, many Supreme Court justices appeared skeptical about the legality of the duties, which have constantly changed as Trump threatens various countries over a lengthy list of reasons. Chief Justice John Roberts, a conservative, noted that the IEEPA "has never before been used for that purpose," and that the idea that the law allows the President to set tariffs "seemed to be misfit."

In response to Costco's suit, the White House continued defending Trump's duties.

"The economic consequences of the failure to uphold President Trump's lawful tariffs are enormous and this suit highlights that fact," White House spokesperson Kush Desai said in a statement to CNBC. "The White House looks forward to the Supreme Court's speedy and proper resolution of this matter."

Costco's case comes as many American families already feel squeezed by higher prices, fueled in large part by Trump's tariffs. Experts have warned about a "K-shaped economy" where wealthier shoppers keep spending while lower-income households tighten budgets and consumer confidence plunges as the holiday shopping season begins.

In October, economists with Goldman Sachs estimated that US consumers will ultimately pay for 55% of Trump's tariffs, American companies will be responsible for 22% of the costs, while foreign exporters will cover 18%.