Costco has launched legal action against the US government in an effort to secure full reimbursement of import duties should the Supreme Court ultimately rule that President Donald Trump lacked the authority to impose the contested tariffs.
In its lawsuit, filed over the Thanksgiving period, the retailer asks the US Court of International Trade to declare the tariffs unlawful, arguing that the former president overstepped his powers by invoking the International Emergency Economic Powers Act (IEEPA) to justify them. Two lower courts have already determined that Trump exceeded his authority, and the issue now sits before the Supreme Court.
Costco says it has faced significant financial impact from the levies and fears that, even if the Supreme Court upholds earlier rulings, it may not automatically receive refunds. Its lawyers argued that a dedicated legal challenge is necessary because repayment “is not guaranteed in the absence of their own judgment and judicial relief”.
While the company did not disclose the exact amount it hopes to recover, external trade data indicates that importers have collectively paid around $90 billion in tariffs tied to IEEPA as of late September. Costco filed its case ahead of a 15 December 2025 deadline, after which recovering any payments would become far more difficult.
The Court of International Trade first ruled the tariffs unlawful in May, a judgment later affirmed by the US Court of Appeals. During November’s Supreme Court hearing, several justices appeared doubtful that a president can impose such tariffs without congressional approval.
The Trump administration maintains that emergency powers under IEEPA permit the imposition of global tariffs and has warned that an adverse ruling would weaken US negotiating strength and cost the Treasury billions already collected.
White House spokesperson Kush Desai told CNBC: “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.”
Last month, President Trump claimed the US was “taking in Trillions of Dollars” in tariffs and pledged that a dividend of at least $2,000 per person—excluding high earners—would be distributed to Americans.
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