In court documents, attorneys for Costco indicated that the company is seeking a “full fund” for all duties paid in accordance with Trump’s use of the International Emergency Economic Powers Act.
Costco has filed a lawsuit against the Trump administration, challenging its tariff policy and asking that a court issue a refund if the Supreme Court finds the import duty illegal.
According to National Public Radio, the Supreme Court is currently “weighing the future of President Trump’s tariffs on nearly all imports.” So far, the justices appear skeptical of the tariffs’ legality; lower courts have already found that Trump exceeded his authority through the improper leveraging of emergency economic powers.
In court documents, attorneys for Costco indicated that the company is seeking a “full fund” for all duties paid in accordance with Trump’s use of the International Emergency Economic Powers Act.
“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 claims.
Until Trump’s re-election, no president had ever used or attempted to use the International Emergency Economic Powers Act to impose tariffs. Aside from Costco, dozens of other companies—large and small—have filed lawsuit challenging the administration’s authority.
While hearing another tariff-related case, Chief Justice John Roberts noted that “the imposition of taxes on Americans” has always “been a core power of Congress” rather than the president.
In response to the administration’s claims that IEEPA allows the president to broadly “regulate” imports and experts after an emergency has been established, Roberts pointed out that “the statute doesn’t use the word ‘tariff.’”
“It has a lot of actions that can be taken under this statute,” Justice Elena Kagan told Solicitor General D. John Sauer. “It just doesn’t have the one you want.”
Costco has not yet stated how much, exactly, it has lost or spent as a result of Trump’s tariff policy. However, data from U.S. Customs and Border Protection indicates that the federal government received about $90 billion in IEEPA-related duties by the end of July—and close to $205 billion through October.
During a May earnings call, Costco’s chief financial officer, Gary Millerchip, told investors that about a third of the company’s sales come from imported products. Millerchip said that some prices had already been impacted by the tariffs, but said that Costco is not planning to raise prices “because they are key staple items” for customers.”
“We essentially held the price on those to make sure that we’re protecting the member,” Millerchip said.
In response to the lawsuit, the White House issued a statement that did little to address Costco’s legal claims.
“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. “The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”
Sources
Costco seeks ‘full refund’ for tariffs in new lawsuit against Trump administration
Costco sues the Trump administration over tariffs, joining a refund queue
Costco sues the Trump administration, seeking a refund of tariffs
Costco sues Trump administration for ‘full refund’ of tariffs
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