Costco Wholesale Corporation has initiated a federal lawsuit aimed at blocking the emergency tariffs imposed by former President Donald Trump. The retailer seeks to recover funds it claims were improperly paid on imported goods as a result of these tariffs. The lawsuit was filed in the Court of International Trade, where Costco argues that Trump’s use of emergency powers to impose these tariffs violates statutory limits.
The case specifically challenges tariffs on goods imported from countries including China, Mexico, and Canada. According to Costco, the application of these tariffs has led to significant financial burdens, with the retailer having paid these duties throughout the year. The firm now faces an impending deadline, as the government will begin finalizing its import entries on or after December 15, 2025. Once the entries are liquidated, the duty amounts become irrevocable, limiting Costco’s ability to contest or recover these charges.
Legal Arguments and Implications
Costco has expressed urgency in pursuing this lawsuit, noting that one of its entries has already been finalized. More entries are approaching the cutoff, prompting immediate legal action. The retailer is requesting the court to declare the tariff orders invalid, prevent Customs and Border Protection from enforcing these tariffs on future shipments, and mandate the government to refund all duties paid under the emergency tariff program.
This lawsuit places Costco among a growing number of companies contesting the legality of Trump’s tariff actions. Earlier this year, Learning Resources, Inc., a manufacturer of educational toys, also filed a lawsuit, citing concerns about increased duty costs due to the tariffs. Additionally, V.O.S. Selections, Inc., a wine and spirits importer, achieved significant legal victories that have challenged the validity of these tariffs, with the matter now before the Supreme Court.
Other businesses, including those in the apparel and automotive sectors, have similarly filed lawsuits claiming the tariffs have led to sudden cost increases and disruptions in supply chains. These challenges indicate a widespread concern among importers regarding the financial impact of the tariffs.
Future Developments
Costco’s lawsuit draws upon previous legal victories that have questioned the authority of the emergency powers law used by Trump to implement tariffs. Both the Court of International Trade and the Federal Circuit have ruled that the law does not grant the president the authority to impose tariffs. However, Costco asserts that these rulings alone do not ensure refunds for companies unless they proactively file their own cases before their entries are finalized.
As the Supreme Court deliberates on the broader legal context surrounding these tariffs, a decision is expected soon. The outcome of this ruling could significantly influence the speed at which Costco’s case progresses and determine whether numerous other companies can seek refunds for tariffs they argue were imposed without legal justification.
In the meantime, Costco’s legal team is prepared to navigate the complexities of this case, representing the retailer’s interests against a backdrop of rising costs and competitive pressures in the retail market.
