Costco Sues Trump Administration, Seeks Full Refund' of Tariffs

"Costco is suing the federal government, asking the court to strike down President Donald Trump's executive order on tariffs. The complaint was filed with the U.S. Court of International Trade against the United States, the U.S. Customs and Border Protection agency, and Rodney S. Scott, as the Commissioner of U.S. Customs and Border Protection. In April, Trump signed an executive order claiming power under the International Emergency Economic Powers Act (IEEPA) to impose what he labeled as reciprocal tariffs."

"Because IEEPA does not clearly authorize the President to set tariffs, Costco's complaint argues, the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them. The lawsuit is seeking a full refund of all tariffs paid under Trump's executive order pursuant to IEEPA. Several other companies have already sued to challenge these tariffs, including cosmetics manufacturer Revlon, eyeglass maker EssilorLuxottica, motorcycle manufacturer Kawasaki, tuna and other canned foods seller Bumble Bee, and Japanese auto supplier Yokohama Tire."

"Lower federal courts ruled against the Trump administration's interpretation of the law but allowed the tariffs to remain in effect while the legal challenges worked their way through the courts. Last month during oral arguments, the Supreme Court including justices appointed by both Republican and Democratic presidents appeared extremely skeptical of the government's defenses of the tariffs' legality, leading many to believe the nation's highest court will eventually overturn them."

Costco filed a lawsuit in the U.S. Court of International Trade seeking to strike down tariffs imposed under a Trump executive order that invoked the International Emergency Economic Powers Act (IEEPA). The complaint names the United States, U.S. Customs and Border Protection, and its commissioner as defendants and argues IEEPA does not clearly permit the President to set tariffs. Costco seeks full refunds for duties paid under the orders. Multiple companies have filed similar challenges. Lower courts criticized the administration's legal theory but kept tariffs in effect, and the Supreme Court showed skepticism during recent oral arguments.

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