Costco Sues Trump Over Tariffs in Trade Court Fight

The nation's largest warehouse club, Costco, is among numerous companies that have filed lawsuits challenging President Trump's imposition of tariffs using an economic emergency powers law. These legal challenges, including Costco's filing in the US Court of International Trade on November 28th, aim to secure potential refunds for duties paid should the Supreme Court deem the tariffs unlawful. Costco's legal team stated their complaint was prompted by uncertainty regarding guaranteed refunds for all businesses paying these duties.

Costco specifically requested immediate court intervention after Customs and Border Protection denied its request to extend the schedule for finalizing tariff determinations. The company asserts this denial could jeopardize its future ability to seek full refunds. This move marks a significant corporate player entering a legal battle previously dominated by smaller businesses and some state officials, underscoring the widespread financial impact of expansive and changing tariff policies.

While other major companies like Revlon and Kawasaki have also brought tariff lawsuits, Costco is an outlier among big operators who have largely not pursued similar legal avenues. The company has implemented strategies to mitigate tariff costs, including rerouting products and adjusting sourcing. However, executives acknowledge the difficulty in predicting future price impacts for consumers, despite their size and operational efficiencies.