Costco Challenges Trump-era Tariffs in Court Seeking Refunds
Costco has filed a lawsuit in the Court of International Trade against the Trump administration, aiming to invalidate tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and to obtain refunds for duties already paid. The lawsuit contends that the IEEPA was misused by applying it to tariffs, arguing the act only authorizes actions against an unusual threat declared in a national emergency and does not mention tariffs as a permissible measure.
Costco seeks to halt the liquidation of duties, noting that Customs and Border Protection (CBP) finalizes duty amounts approximately 314 days after import. The company also requests an order for refunds of any tariffs paid that might later be ruled unlawful. However, there remains legal risk as importers may be blocked from refunds due to the liquidation window and related rights issues even if the Supreme Court eventually deems the tariffs unconstitutional.
The Supreme Court heard oral arguments regarding the Trump tariffs in November 2025, with several justices expressing skepticism that the IEEPA covers tariffs. Chief Justice Roberts remarked that taxation is a core power reserved for Congress.
In the fiscal context, total tariff collections for 2025 were about $195 billion, up from $118 billion in 2024. Monthly duties rose sharply from approximately $7 billion in January to $30 billion in September. Costco reported that roughly one-third of its U.S. sales are imports, with nearly half of those imports coming from China, Mexico, and Canada.
This lawsuit underscores the urgency surrounding potential refunds, as importers may not recover tariffs even if courts later find the tariffs unlawful.
