Costco Demands Tariff Refund, Takes Trump Team to Court

Costco has filed a lawsuit against the Trump administration, arguing that tariffs imposed under President Trump’s “reciprocal” trade measures were unlawful, according to NBC News. The complaint, submitted to the U.S. Court of International Trade, claims that the tariffs—issued under the International Emergency Economic Powers Act (IEEPA)—exceeded the authority granted by the law. Costco is asking the court to order a full refund of all duties the company paid under these tariff orders.

“Because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them,” Costco’s attorney wrote in the filing.

While Costco didn’t detail the dollar amount it believes it is owed, federal figures indicate that importers have paid nearly $90 billion in IEEPA-based tariffs as of late September. Costco CFO Gary Millerchip has previously said that about one-third of the company’s U.S. sales come from imported products, with goods from China accounting for roughly 8% of total U.S. sales.

Millerchip also noted that Costco has chosen not to pass tariff costs on to its members for essential items such as pineapples and bananas, instead absorbing the added expense. The Supreme Court is currently reviewing whether the tariff program is legally valid, and justices across the ideological spectrum have questioned aspects of the government’s argument. Costco’s lawsuit positions the company to secure refunds if the Court ultimately rules the tariffs unlawful, according to the BBC.

Lower courts have previously ruled against the administration’s interpretation of the IEEPA for imposing tariffs, though they allowed the duties to remain in effect as litigation continues. Costco now joins a growing list of major companies—such as Revlon, EssilorLuxottica, Kawasaki, Yokohama Tire, and, per Fox Business, Learning Resources and V.O.S. Selections—seeking refunds. By the end of October, total tariff collections under the program had reached $205 billion.