Costco is suing the U.S. government over Trump's tariffs. Here's why

"Costco has sued the U.S. government to ensure it will receive refunds if the Supreme Court rejects President Donald Trump's bid for sweeping authority to impose tariffs. In a complaint filed on Friday in the U.S. Court of International Trade in Manhattan, Costco said Trump's use of the International Emergency Economic Powers Act to impose tariffs left it uncertain whether businesses can recoup sums they should not have paid."

"The nation's largest warehouse club operator said U.S. Customs and Border Protection denied its request for more time to make final calculations of tariffs owed, threatening its right to complete refunds even if the Supreme Court rules against Trump. Customs and Border Protection had no immediate comment. Costco did not immediately respond to a request for comment. Based in Issaquah, Washington, Costco joined dozens of companies suing to safeguard potential refunds. It is also among the largest."

Costco filed a complaint in the U.S. Court of International Trade in Manhattan to secure refunds if the Supreme Court invalidates President Donald Trump's authority to impose tariffs under the International Emergency Economic Powers Act. Costco said the use of the 1977 emergency powers law left businesses uncertain about recouping improperly paid tariffs. U.S. Customs and Border Protection denied Costco's request for more time to finalize tariff calculations, which Costco says threatens its ability to obtain full refunds even if the court rules against the administration. Costco has reduced suppliers, increased local sourcing, and emphasized its Kirkland brand to address tariff impacts.

Read at Fast Company