Costco sues Trump administration for tariff refunds
Popular wholesale retailer Costco has sued the Trump administration over tariffs. They are seeking a refund of the customs duties they paid.
Wholesale and retail giant Costco has sued the federal government to guarantee a “full refund” of import duties if the Supreme Court rules against President Donald Trump’s sweeping tariffs.
The lawsuit, filed Nov. 28 in the U.S. Court of International Trade in New York and reviewed by USA TODAY, asks the court to find that President Trump’s use of the International Emergency Economic Powers Act to impose the tariffs was illegal.
Costco, the largest U.S. warehouse club operator, said it was the “importer of record” for products affected by the tariffs, but did not specify the amount it was seeking in damages. The company said in its filing that the lawsuit was necessary because even if the high court cancels the tariffs, there is no guarantee that importers will receive refunds unless they file a lawsuit.
Costco also alleges in its lawsuit that Customs and Border Protection (CBP) denied its request to delay calculating the total amount of duties owed. The complaint alleges that if these calculations were completed, Costco’s ability to receive refunds would be materially affected.
The case is separate from a larger case challenging President Trump’s tariffs that the Supreme Court heard on Nov. 5.
The Issaquah, Wash.-based retail warehouse club operator is one of the largest to sue the administration so far, although other companies are suing to protect their refund rights. Other companies seeking duty refund protection include Bumblebee Foods, eyewear giant Essilor Luxottica, Kawasaki Motors, Revlon and Yokohama Tire, according to court records.
Costco and CBP did not immediately respond to USA TODAY’s requests for comment on Dec. 1.
“The razor burn incident”
During nearly three hours of debate on Nov. 5, the Supreme Court justices questioned whether President Trump has the authority to use the International Emergency Economic Powers Act of 1977 to impose steep tariffs on most imports. Legal experts said the justices’ questions revealed a lot about their positions on President Trump’s policies.
Ashley Akers, a former Justice Department attorney now with the law firm Holland & Knight, previously told USA TODAY that she heard “noticeable skepticism from judges across the ideological spectrum.”
“Overall, it felt like a strong day for tariff opponents, but this one looks like it’s going to be a close case,” Akers said.
Curtis A. Bradley, a foreign relations law expert at the University of Chicago Law School, said several justices were concerned that Congress would lose control over tariffs if they sided with Trump, even though the Constitution gives lawmakers the authority to do so.
Oliver Dunford, an attorney with the libertarian group Pacific Legal Foundation, said the case is complex enough without a majority of the court focusing on just one legal argument.
“If I had to guess, I think the court would rule against the president without agreeing on the reasons,” Dunford said.
The Supreme Court has reviewed the tariff case at an accelerated pace, but has not announced when it will issue a decision.
Contributors: Maureen Groppe, Bert Jansen, Aisha Bagchi, USA TODAY. Reuters
