Costco sues Trump administration to pause tariffs, refund payments
Costco is suing the Trump administration, seeking a full refund of import taxes it paid under President Trump’s executive orders earlier this year.
The discount retailer, a major importer, wants the U.S. government to stop imposing tariffs on goods Costco brings into the country until the Supreme Court rules on the legality of the executive orders.
according to case In the lawsuit filed Friday with the United States Court of International Trade, Costco wants the court to declare that the president does not have the authority to set tariffs under the International Emergency Economic Powers Act and has challenged the tariff orders as illegal.
Tariffs are taxes imposed on imported goods. Traditionally, tariffs are imposed after congressional approval, but in February Trump invoked a 1977 law.national emergencyThe law used for sanctions is used to issue global tariff orders, bypassing the traditional process.
The Supreme Court is currently debating the legality of tariff orders.
“Whether Costco will be successful in its lawsuit to recover tariffs it has already paid on its imports really depends on the Supreme Court ruling on whether the president has the legal authority to impose tariffs,” said Devashish Mitra, a professor of economics and global affairs at Syracuse University.
Costco is the latest in a growing list of companies that includes motorcycle maker Kawasaki, beauty products maker Revlon and others that will sue the Trump administration for refunds if the Supreme Court rejects Trump’s economic policy.
Critics say there may be valid national security reasons for which the president has the authority to set tariffs, but tariffs on imports such as shirts or sheets are inappropriate and illegal.
“Imposing a general tariff on all kinds of imports from one country or several countries with a single stroke of the president’s pen will be very difficult, if not impossible, if other tariff principles are resorted to,” Mitra said.
About a One-third of Costco’s US sales The main sources come from imported goods, mainly from China, Canada and Mexico.
Costco emphasized that most imports from China face a minimum duty of 145%, which affects its orders.
Trump boasted that tariffs helped reduce the trade deficit and implemented them starting in October. $205 billion Federal government revenue in 2025.
The policies have disrupted the retail industry and thrown every industry from retailers to toy manufacturers into turmoil.
While some are trying to reorganize their supply chains to source domestically or from countries unaffected by tariffs to keep costs down, others are being forced to offer products at cheaper price points that buyers can afford.
Companies pass the costs on to consumers. Some are covering some of the additional costs and taking a hit to their profits to keep retail prices from rising too much.
Prices began to rise immediately after broader tariff measures were announced in early March. continued to increase gradually In the following months, imports grew at roughly twice the rate of domestic goods, according to the National Bureau of Economic Research.
“We will do everything we can to mitigate the tariff impacts,” Costco CEO Ron Vachris said on its September earnings call. “The final effect will be that we mirror the price. If we do that, we will be the last to rise and we will always [be] He’s the first to get into all the opportunities we have there.
