Costco, a major player in the wholesale retail industry, has initiated legal action against the Trump administration concerning the so-called Trump tariffs. The company is seeking to recover what it claims are unlawful costs incurred due to these tariffs. This case is unfolding as the Supreme Court examines the legality of the tariffs and whether former President Donald Trump had the authority to impose broad duties on most imports under the 1977 International Emergency Economic Powers Act.
The lawsuit was filed by Costco in the U.S. Court of International Trade in New York on November 28. In its filing, the company is asking the court to determine that Trump’s use of the International Emergency Economic Powers Act to impose sweeping tariffs was unlawful.
Full Refund
Costco is not only seeking a full refund of the tariffs it paid but is also taking legal action against the Trump administration for an unspecified amount of damages related to those duties. This move highlights the significant financial impact the tariffs have had on the company.
In its complaint, Costco argues that importers lack assurance they will be refunded tariffs already paid, even if the Supreme Court ultimately rules the tariffs as unlawful. This uncertainty has prompted the company to take proactive measures by initiating legal proceedings now. By doing so, Costco aims to secure its position in line, ensuring it can recover what it considers to be improperly collected tariff payments if the Supreme Court decides that Trump overstepped his legal authority.
No Deadline for a Ruling
Currently, the Supreme Court is considering the consolidated cases Learning Resources v. Trump and V.O.S. Selections v. Trump. The court heard arguments on November 5 regarding whether Donald Trump could use the 1977 emergency-powers law to levy sweeping tariffs on most imports. However, no firm deadline has been set for a ruling, which is expected to come later this term.
Several companies, including Bumble Bee Foods, Kawasaki Motors, EssilorLuxottica, Revlon, and Yokohama Tire, have already taken legal action over the Trump tariffs. However, Costco stands out as the largest corporate challenger so far, given its annual revenue of over $275 billion and its business model that heavily relies on imports.