Costco Wholesale has taken the fight against Donald J. Trump’s sweeping 2025 tariff policy directly to the courts, filing a lawsuit last Friday in the U.S. Court of International Trade (CIT) seeking a full refund of import duties it paid under tariffs imposed by executive order under the International Emergency Economic Powers Act (IEEPA). The retail giant argues that the administration exceeded its legal authority and that the tariffs must be overturned.
In the filing, Costco quotes the law: IEEPA authorizes the president to act only in the face of an “unusual and extraordinary threat” following a national emergency, and “does not use the word ‘tariff’ or any term of equivalent meaning,” the company notes — underscoring its position that the tariff orders lack a statutory basis.
Costco is also asking the court to block further tariff collections and to halt the liquidation of its recent imports — a step the company contends is urgent. Once an import entry is liquidated by U.S. Customs and Border Protection (CBP), tariff assessments become final; after that, even if the tariffs are later declared unlawful, recovering paid duties may not be legally possible.
The lawsuit arrives as the Supreme Court of the United States weighs in on the consolidated cases Learning Resources v. Trump and V.O.S. Selections, Inc. v. Trump — whether IEEPA authorizes such sweeping tariff powers and whether that delegation violates the Constitution.
During oral arguments in November, several justices — including those from both conservative and liberal wings — expressed skepticism about the government’s case. Chief Justice John Roberts said flatly that “the vehicle is the imposition of taxes on Americans, and that has always been a core power of Congress.”
“It’s uncertain whether refunds will be granted and, if so, how much,” notes one expert following these legal challenges. Costco itself declined to disclose how much it has paid in tariffs, though CBP data show the emergency-tariff program has collected nearly $90 billion through late September.
Costco — a warehouse-club operator that imports a sizable portion of its inventory — is far from alone. The lawsuit joins similar claims from dozens of companies, including manufacturers, retailers, and consumer-goods firms, all racing to preserve their right to possible refunds.
For Costco, the timing is critical. The company argues that CBP has denied its request for an extension of liquidation deadlines, meaning duty assessments on many of its shipments are expected to be finalized as soon as mid-December. Without immediate judicial relief, Costco warns, it may lose any chance at a refund — even if the Supreme Court eventually rules the tariffs unlawful.
Observers say that if the court strikes down the tariff orders — and courts begin granting refunds — the financial and political fallout could be massive. Governments may face hundreds of billions in claims, and future presidents might lose a potent trade-policy tool. As one commentator put it, the case “represents a fundamental test of the constitutional boundaries between Congress and the executive over trade and taxation powers.”
For Costco and other import-heavy businesses, the case is not just about recovering money — it strikes at the heart of how far a president can go with emergency powers. With deadlines looming and the Supreme Court’s ruling expected next year, their legal gamble may shape U.S. trade policy for decades.
