Costco Sues Trump Administration, Seeks ‘Full Refund’ of Tariffs
Photo by JJBers via Flickr (CC by 2.0 license).
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.” Since then, he has paused, reinstated, and changed several of these tariffs and imposed new ones.
“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, according to NBC News.
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’s lawsuit was motivated by the likelihood of a Supreme Court ruling against the Trump administration, reported Bloomberg, “prompted due to the uncertainty that refunds will be guaranteed for all businesses that have been paying duties if the Supreme Court declares the tariffs unlawful.”
In the complaint, Costco argued an immediate intervention by the court was necessary “because Customs and Border Protection denied its request to extend the schedule for finalizing tariff determinations under Trump’s use of the International Emergency Economic Powers Act,” and this “could jeopardize its ability to seek full refunds in the future,” Bloomberg’s report added.
Costco did not specify how much it had already paid in tariffs, but it is one of the largest retailers to date to challenge these tariffs in court.
