Costco Sues Trump Admin Over Tariffs, Wants Money Back

Costco Sues Trump Admin Over Tariffs, Wants Money Back
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The wholesale retail giant Costco has filed a lawsuit against the Trump administration over the so-called Trump tariffs, seeking to claw back what it says are unlawful costs. The case comes as the Supreme Court is weighing the legality of those tariffs and whether Trump has the authority to impose sweeping duties on most imports under the 1977 International Emergency Economic Powers Act.

Costco's lawsuit, filed in the U.S. Court of International Trade in New York on Nov. 28, asks the court to rule that Trump's use of the International Emergency Economic Powers Act to impose broad tariffs was unlawful.

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A full refund

The wholesale retailer is seeking a full refund of the tariffs it paid and is also suing the Trump administration for an unspecified amount of damages linked to those duties.

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In its complaint, Costco argues that importers have no assurance they will be refunded tariffs already paid, even if the Supreme Court ultimately strikes them down as unlawful, unless they bring their own lawsuits.

By going to court now, Costco is effectively trying to secure its place in line, ensuring it can recover what it views as improperly collected tariff payments if the high court rules that Trump overstepped his legal authority.

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No deadline for a ruling

Now before the justices in the consolidated cases Learning Resources v. Trump and V.O.S. Selections v. Trump, the Supreme Court heard arguments on November 5 over whether Donald Trump can use a 1977 emergency-powers law to levy sweeping tariffs on most imports, but has set no firm deadline for a ruling, which court watchers expect sometime later this term.

Several companies, including Bumble Bee Foods, Kawasaki Motors, EssilorLuxottica, Revlon and Yokohama Tire, have already gone to court over the Trump tariffs, but Costco — with more than $275 billion in annual revenue and a business heavily reliant on imports — is by far the largest corporate challenger so far.