Costco Sues US Government, Seeking Full Refund of Tariffs
02nd Dec. 2025
Multinational retailer Costco has filed a lawsuit against the US government seeking a full refund of import duties. The move comes as the company aims to recover its payments if the Supreme Court ultimately rejects President Donald Trump’s authority to impose emergency tariffs without congressional approval. Costco, one of the biggest importers in the world, argues that billions of dollars in charges were collected using authority that has already been declared illegal by courts.
Costco’s case that was filed in the US Court of International Trade over the Thanksgiving holiday, aims to secure its right to recover the tariffs should the Supreme Court uphold earlier rulings. Two lower courts previously determined that Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA) to justify global levies. The case is now before the US Supreme Court and several major companies are racing to protect their potential refunds ahead of a 15 December 2025 deadline.
Legal Battle between Costco and Trump Intensifies
In its filing, Costco said its business had suffered due to the tariffs. It stressed that “a separate action is necessary” because there is no guarantee the company would automatically receive a refund even if the justices strike down the duties. Furthermore, the retailer did not specify the total amount it is seeking back, yet trade data shows that importers have collectively paid roughly $90 billion in IEEPA-related tariffs by late September.
The lawsuit has followed a May decision by the Court of International Trade, which first ruled that Trump acted unlawfully. That judgment was subsequently affirmed by the US Court of Appeals. Although the administration maintains that emergency powers grant the president the ability to impose the tariffs, several Supreme Court judges appeared skeptical during a hearing last month.
White House Faces Rising Tariff Risks
The Trump administration warns that an unfavorable ruling would constrain US negotiating leverage with foreign governments and deprive the Treasury of billions already collected. White House spokesperson Kush Desai told CNBC the consequences of reversing the tariffs would be “enormous,” adding that the administration expects a “speedy and proper resolution” from the Supreme Court.
Meanwhile, President Trump has repeatedly defended the duties, claiming the US is “taking in Trillions of Dollars” and promising that “a dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.”
Although the court’s final ruling is pending, the outcome could reshape the limits of presidential authority over trade policy and determine whether companies like Costco can reclaim vast sums paid under the disputed tariffs.
Web Resources on Costco Sues US Government
1. Reuters.com: Costco sues US to preserve tariff refunds if Trump loses appeal
2. BBC.com: Costco sues Trump administration for ‘full refund’ of tariffs
3. BusinessInsider: Costco sues over Trump’s tariffs in a bid to secure a refund
4. AcademicBlock.com: Who Pays for the U.S. Tariffs?