Costco seeks tariff refund in new lawsuit against Trump administration

Costco Wholesale has joined the growing list of companies suing the Trump administration over tariff policies. — Image credit: Kevin Carter/Getty Images

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Summary

Costco lawsuit

Costco has joined a growing list of companies suing the Trump administration over tariff policies under the International Emergency Economic Powers Act.

Refund

Costco is seeking a full refund of duties it paid under the IEEPA law. However, it did not specify an amount.

Supreme Court involvement

The lawsuit comes as the Supreme Court is reviewing the legality of Trump’s sweeping tariff agenda, with justices expressing skepticism about keeping them in place

Full story

Costco Wholesale has joined the growing list of companies suing the Trump administration over tariff policies. The big-box chain is asking the Court of International Trade to consider all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful.

In the filing, Costco is asking for a full refund of all duties it paid under the act since President Donald Trump signed an executive order imposing what he called ”reciprocal tariffs.”

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“Because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand, and the defendants are not authorized to implement and collect them,” Costco’s lawyer writes in the lawsuit.

Tariff legal challenges

The lawsuit comes amid other legal challenges to Trump’s tariff policy. The Supreme Court is reviewing the legality of Trump’s sweeping tariff agenda. However, justices have expressed skepticism about the government’s case for keeping them in place, according to NBC News.

When Trump implemented the tariffs, he became the first to use the IEEPA to do so, prompting some to question their legality. Lower courts ruled against the administration’s use of the law. However, they kept the tariffs in place until the Supreme Court rules on the matter.

Costco’s case

Costco did not say how much the duties have cost the company, but NBC News reports importers have paid nearly $90 billion under the IEEPA law through late September.

Costco also previously noted that about a third of its U.S. sales are imported products. However, the company has not raised prices for consumers, specifically on imported fresh produce, because they are key staple items for its customers.

“We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense and consolidating our buying efforts globally to lower the cost of goods across all our markets,” Costco’s chief financial officer, Gary Millerchip, said.

Similar lawsuits

Costco’s lawsuit joins the growing list of other major companies seeking tariff refunds in court.

Revlon, EssilorLuxottica, Kawasaki, Bumble Bee, Yokohama Tire and many other smaller firms have filed similar lawsuits, NBC News reports.

Julia Marshall

Julia Marshall is a morning digital producer at Straight Arrow News. Thanks to her extensive newsroom experience, Julia has a keen eye for news and extensive experience in writing and editing content across all topics and platforms.

Alan Judd contributed to this report.

Tags: Costco, Donald Trump, Tariff, Trump administration

Why this story matters

Costco's lawsuit against the Trump administration over tariffs highlights ongoing legal and constitutional questions about presidential trade authority and the potential financial implications for businesses affected by these duties as the Supreme Court deliberates their legality.

Presidential authority

This dispute challenges the extent of the president’s power to impose tariffs under emergency economic laws, raising constitutional issues about the separation of powers and the role of Congress in trade policy.

Business financial impact

According to CNBC and other sources, companies like Costco seek guarantees for tariff refunds, underscoring the uncertainty and potential financial losses that large-scale importers face amid changing trade rules.

Legal and judicial review

The Supreme Court’s review of these tariffs could set precedents for future use of emergency economic powers, affecting the broader business landscape and clarifying refund rights for firms that have paid disputed duties.

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Context corner

The International Emergency Economic Powers Act (IEEPA), enacted in 1977, allows the president to regulate certain foreign transactions during a national emergency but has not previously been used to impose tariffs. The debate centers on executive versus congressional authority.

Do the math

Through late September, U.S. Customs and Border Protection reported that importers paid nearly $90 billion in tariffs under IEEPA. Total government collections, including other tariff programs, were $196 billion for fiscal year 2025 — a 122 percent increase over the prior year.

Global impact

The tariffs targeted imports from multiple countries including China, Mexico and Canada, and are part of broader trade and supply chain tensions that have global ramifications for businesses and economies beyond the United States.

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Sources

NBC News

Bias comparison

Media outlets on the left frame Costco's action as "suing Trump" and a "major lawsuit," using terms like "Demands" to emphasize confrontation and highlighting potential "billions in refunds" and lower courts deeming tariffs "illegal.
Media outlets in the center maintain neutrality, noting the challenge was "largely driven by small businesses and Democratic state officials" and mentioning "tens of billions of dollars a month" generated by tariffs, while using conditional phrasing like "if they're illegal.
Media outlets on the right portray Costco as "improperly required to pay," focusing on a procedural denial by Customs "jeopardizing its right to recoup payments," de-emphasizing prior rulings.

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Media landscape

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81 total sources

Key points from the Left

Costco is suing the Trump administration, requesting a full refund of all tariffs paid, as stated in its Nov. 28 filing asking the Court of International Trade to declare these tariffs unlawful.
Costco's Chief Financial Officer Gary Millerchip stated that about a third of the company's sales come from imported goods, which were affected by these tariffs.
Other companies, including Revlon and Kawasaki, have joined Costco in seeking tariff refunds due to similar claims regarding the legality of the tariffs.
The legality of Trump's tariffs is under review by the Supreme Court, with earlier lower courts ruling against such unilateral impositions under the International Emergency Economic Powers Act.

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Key points from the Center

Costco Wholesale Corp. Filed a complaint in the U.S. Court of International Trade seeking to declare IEEPA-based tariffs unlawful and to block Customs and Border Protection from applying them while ordering refunds of duties already paid.
CBP's refusal to extend liquidation deadlines prompted Costco to sue, fearing the Dec. 15 cutoff could bar refund claims amid lower federal courts questioning IEEPA's tariff authority.
Costco Wholesale Corp.'s scale and revenue figures show it reported $275.2 billion in the fiscal year ended Aug. 31, with nearly $90 billion paid under IEEPA and about 8% of U.S. Sales from China imports.
White House spokesman Kush Desai said "The White House looks forward to the Supreme Court's speedy and proper resolution of this matter", as Costco joins other firms seeking tariff refunds, increasing legal pressure.
The Supreme Court of the United States will decide whether importers can recover duties and if Trump had authority under IEEPA after Nov. 5, as justices showed skepticism during oral arguments.

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Key points from the Right

Costco Wholesale Corporation is suing the federal government to block President Donald Trump's emergency tariffs and recover payments it claims were improperly made on imported goods.
The case argues that Trump exceeded his authority by imposing tariffs using an emergency-powers law not meant for tariff creation.
Costco faces a deadline for recovering duties, as the government will begin finalizing import entries on December 15.
The Supreme Court's upcoming decision on the broader legal question could impact Costco's case and the ability of other companies to seek refunds for these tariffs.

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