Costco has joined a legal battle against the U.S. government to secure reimbursement for tariffs it had to pay if President Trump’s claim of broad tariff authority is rejected by the U.S. Supreme Court. The membership-based retail giant lodged a complaint in the U.S. Court of International Trade in Manhattan, expressing uncertainty about businesses recovering overpaid sums due to Trump’s tariff implementation under the International Emergency Economic Powers Act.
Legal expert Brent Skorup from the Cato Institute highlighted the growing number of companies taking legal action at the trade court to potentially reclaim excess tariff payments. Trump’s assertion of unilateral tariff power under the International Emergency Economic Powers Act has been rejected twice in court rulings.
Trade lawyer Tim Meyer emphasized that if the Supreme Court rules against Trump and deems the tariffs unlawful, Costco stands a strong chance of claiming a refund through the U.S. International Trade Court. Costco is proactively seeking reimbursement to protect its right to a full refund before the Customs and Border Protection’s tariff liquidation process, which commences on December 15.
With an annual revenue of $275.2 billion, Costco’s involvement adds weight to numerous companies, including Bumble Bee Foods, EssilorLuxottica, Kawasaki Motors, Revlon, and Yokohama Tire, pursuing potential tariff refunds. Meyer, who also teaches at Duke University, predicts a surge in lawsuits seeking substantial refunds if Costco’s legal efforts succeed.
The Supreme Court’s recent oral arguments raised doubts about the legality of Trump’s tariff imposition under emergency powers, with justices expressing skepticism. Costco has undertaken strategic measures to address tariffs, such as streamlining suppliers and focusing on local sourcing and its Kirkland brand. The Supreme Court is expected to rule on the case promptly, although no specific timeline has been disclosed.