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Costco sues US government to reclaim tariffs ahead of Supreme Court ruling
Costco Wholesale has filed a lawsuit against the US government, seeking a full refund of import duties paid under tariffs imposed by former President Donald Trump, should the Supreme Court rule the levies unlawful. The case, submitted to the US Court of International Trade over the Thanksgiving holiday, argues that the retailer's business has been adversely affected by the tariffs and that a separate legal action is necessary to secure repayment.
Legal challenge to Trump's emergency tariffs
The lawsuit targets tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which Trump invoked to justify the measures. Costco's legal team contends that the president overstepped his authority by using emergency powers to impose the tariffs-a claim already upheld by two lower courts. The US Court of International Trade ruled in May that the tariffs were unlawful, a decision later affirmed by the US Court of Appeals.
With the case now before the Supreme Court, Costco's filing comes ahead of a 15 December 2025 deadline, after which the company could face difficulties reclaiming funds paid to the government. The retailer did not disclose the exact amount it seeks to recover, but US customs data indicates that importers have paid roughly $90 billion in IEEPA-related tariffs as of late September.
Supreme Court scepticism and administration pushback
During last month's Supreme Court hearing, justices appeared sceptical of Trump's authority to impose the tariffs without congressional approval. The administration, however, has argued that the president's emergency powers grant him the right to enforce global tariffs. White House spokesperson Kush Desai warned that an unfavourable ruling would hinder the US government's ability to negotiate with other countries and result in the loss of billions already collected.
The economic consequences of the failure to uphold President Trump's lawful tariffs are enormous, and this suit highlights that fact.
Kush Desai, White House spokesperson
Desai added that the White House anticipates a "speedy and proper resolution" from the Supreme Court.
Broader implications for businesses and consumers
The outcome of the case could have significant financial repercussions for companies that have paid billions in tariffs. Costco's lawsuit underscores concerns that refunds may not be guaranteed even if the Supreme Court sides with lower court rulings. Meanwhile, Trump has previously claimed that tariffs have generated "trillions of dollars" for the US and promised a $2,000 dividend per person-excluding high-income earners-if the funds were redistributed.
Next steps
The Supreme Court's decision will determine whether businesses like Costco can reclaim tariff payments and may set a precedent for future presidential use of emergency economic powers. A ruling against the administration could also impact ongoing trade negotiations and Treasury revenues tied to the tariffs.
