Costco Becomes Latest Retailer to Sue Over Trump’s Emergency Tariffs
It is requesting refunds and asking the court to block the final clearance of its imports due later this month.
Costco is stepping into the legal fray over former President Donald Trump’s emergency tariffs, joining a growing list of major importers who aren’t waiting for the Supreme Court to decide before taking action. The retailer has begun pursuing refunds on duties it’s already paid, a move that could ripple across global trade and supply chains depending on how the courts rule reports pbs.org.
Earlier this year, the U.S. Court of International Trade in New York and the U.S. Court of Appeals for the Federal Circuit in Washington both found Trump’s sweeping tariffs unlawful. The case has since moved to the Supreme Court, where during a November 5 hearing, several justices expressed scepticism about whether the president had the authority to declare a national emergency to impose tariffs on goods from nearly every trading partner.
If the Supreme Court ultimately strikes down the tariffs, importers could be in line for significant refund, though nothing is guaranteed. “It’s uncertain whether refunds will be granted and, if so, how much,” said Brent Skorup, a legal fellow at the Cato Institute. “But the possibility has prompted many companies, including Costco, to file actions in the U.S. Court of International Trade to get in line, so to speak, for potential refunds.”
Trump has argued that the 1977 International Emergency Economic Powers Act grants him broad authority to impose tariffs, a power typically held by Congress. So far, courts have rejected that claim twice. According to trade lawyer Joyce Adetutu, a partner at Vinson & Elkins, Costco’s move is about securing its financial footing ahead of a possible Supreme Court decision. She noted that the retailer wants to “make sure that if and when the Supreme Court overturns the IEEPA tariffs, which could come as late as the summertime, they have the judgment in place and can collect a refund.”
For Costco, a membership-driven warehouse club built on low prices, high volume, and fast inventory turnover, tariffs hit close to home. The company stocks a tightly curated selection of more than 4,000 products, ranging from groceries, appliances, and electronics to tires, jewellery, automotive goods, and its popular Kirkland Signature brand. Any lasting shift in tariff policy directly influences its global sourcing, pricing, and supply chain efficiency, making these legal steps a strategic part of protecting its business model.
Image source: pbs.org
