Costco Wholesale just filed a major lawsuit against President Donald Trump’s administration. The retail giant wants a full refund on every tariff it has paid under the International Emergency Economic Powers Act. This legal move could have huge consequences for businesses across the country.
According to HuffPost, the company filed the case in the Court of International Trade. Costco isn’t just asking for their money back. They also want the court to stop future tariffs and declare that these import duties are illegal.
Costco’s main argument is that Trump is misusing the IEEPA. The law was created for extraordinary national emergencies, not for putting duties on everyday imported products. The company points out something critical from the actual law text.
The lawsuit reveals a major flaw in how tariffs were imposed
According to the lawsuit, “The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning.” This statement directly challenges whether the administration has the legal right to use this law for tariffs at all.
The IEEPA was passed in 1977 and has been changed several times since then. But Costco notes that no other president has ever used it to impose tariffs. This history shows the current use might be way outside what the law was meant for. The tariff situation has affected how Mexico navigated trade barriers recently.
Costco doesn’t say exactly how much Trump’s tariffs hit their bottom line, but around one-third of its U.S. sales come from imports – suggesting the costs weren’t small.
The lawsuit also mentions that previous court rulings already called these tariffs unlawful. Both the Federal Circuit and the international trade court have made decisions against these duties before. This legal history helps Costco’s case.
Why is Costco filing this lawsuit now when the Supreme Court is already looking at these import duties? The answer is about protecting their money. Companies don’t automatically get refunds for unlawfully collected tariffs unless they get their own court judgment.
Even if the Supreme Court rules against the administration, Costco needs this specific lawsuit to make sure they actually get their money back. About one-third of Costco’s U.S. sales come from imported goods, so these tariffs have hit them hard.
The Trump administration says it has collected $195 billion through tariffs as of the end of October. That number is about $100 billion less than the White House originally expected to bring in. The administration has discussed using tariff revenue for programs, though details remain unclear.
Published: Dec 2, 2025 01:45 pm