Retail Giant Costco Sues Trump Administration to Recover Tariff Costs

Retail Giant Costco Sues Trump Administration to Recover Tariff Costs

Costco sues Trump administration for full tariff refund ahead of Supreme Court ruling. Filed November 28, 2025, in U.S. Court of International Trade (NY), Costco challenges tariffs under International Emergency Economic Powers Act (IEEPA) as unlawful, seeking injunction on collections and reimbursement of duties paid (~$90B total importers; Costco undisclosed).​

Lawsuit Details

Costco imports ~1/3 U.S. sales (8% from China); tariffs (20-125% on China/Mexico/Canada) hit staples like bananas/pineapples. Dec 15 liquidation deadline risks permanent payments; CBP denied extension. Suit ensures refund rights if SCOTUS invalidates (arguments Nov 5; skeptical justices).​

Background

Lower courts ruled IEEPA misused for broad tariffs; Trump appeals. Costco joins Revlon, EssilorLuxottica, Kawasaki, Bumble Bee. No liability admission; payments pro-rated if approved.​

Implications

For Costco: Protects ~$billions; held staple prices despite costs.​

Broader: Precedent for refunds if SCOTUS strikes down; importers race deadlines.​

SOURCE

 

FAQs

Q1: Why sue now?
Dec 15 liquidation locks payments; SCOTUS ruling pending.​

Q2: Amount claimed?
Undisclosed; part of $90B importers paid.​

Q3: Will Costco win?
Lower courts sided against tariffs; SCOTUS skeptical.

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