Costco sues Trump administration for 'full refund' of tariffs

December 2, 2025

Costco has filed a lawsuit in federal trade court seeking to ensure it receives a full refund of import duties if the Supreme Court rules that President Trump lacked authority to impose tariffs under emergency powers without congressional approval. The case stems from Trump's use of the International Emergency Economic Powers Act to implement tariffs that two lower courts have already deemed unlawful, with importers collectively paying approximately $90 billion in these disputed duties through late September. Costco filed ahead of a December 15, 2025 deadline to preserve its ability to reclaim funds, as the company fears it may not automatically receive refunds even if the Supreme Court upholds the lower court rulings against the tariffs.

Who is affected

Costco (the plaintiff retailer)
President Donald Trump and his administration
US importers who have paid approximately $90 billion in IEEPA-related tariffs
The US Treasury
Other companies attempting to protect refund rights
American consumers (potentially affected by promised tariff dividends)

What action is being taken

Costco is suing the US government in the US Court of International Trade
The Supreme Court is hearing the case (after lower court rulings)
Several companies are trying to protect their rights to refunds
The Trump administration is defending the tariffs in court

Why it matters

This case has significant constitutional and economic implications regarding the balance of power between the executive and legislative branches on trade policy. The outcome will determine whether presidents can unilaterally impose tariffs using emergency powers without congressional approval, setting a precedent for future trade actions. Financially, approximately $90 billion in collected tariffs hangs in the balance, which could impact the US Treasury and importers like Costco who may be entitled to refunds if the tariffs are deemed unlawful.

What's next

The Supreme Court will issue a ruling on Trump's tariff authority
Costco's deadline to recoup funds from the government is December 15, 2025
The White House expects "the Supreme Court's speedy and proper resolution of this matter"

Read full article from source: BBC