Costco sues the Trump administration over tariffs, joining a refund queue

"Costco is now one of the largest companies to sue the Trump administration over tariffs, hoping to secure a refund if the Supreme Court declares the new import duties illegal. The Supreme Court is weighing the future of Trump's tariffs on nearly all imports. Justices seemed skeptical about their legality during last month's oral arguments. Lower courts had previously found that Trump had improperly used emergency economic powers to set most of the new levies."

"The list includes makeup giant Revlon, the canned foods maker Bumble Bee and Kawasaki which makes motorcycles and more. Now Costco has joined the queue. "This is the first time we're seeing big companies take their heads out of the sand publicly," said Marc Busch, a trade law expert at Georgetown University. For the most part, small companies have been leading the legal action against tariffs."

Costco filed a lawsuit in the U.S. Court of International Trade seeking refunds if the Supreme Court voids the widespread import tariffs. The Supreme Court is considering the legality of tariffs imposed under emergency economic powers, and justices appeared skeptical during oral arguments. Lower courts previously ruled that those powers were improperly used to set many of the levies. Dozens of companies across industries have sought refunds, and larger firms are increasingly joining litigation that small businesses initially led. Costco did not disclose tariff payments and fears it may not fully recoup costs even if the regime is overturned. About a third of Costco's U.S. sales are imported, mainly non-food items.

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