Costco Takes U.S. Government to Court Over Trump Tariff Refund Dispute

Key Points

Costco has filed a lawsuit against the U.S. government, seeking assurance that it can recover tariff payments if the Supreme Court decides that President Donald Trump’s emergency trade actions were not authorized by law. The company says it should not lose money paid under a system that could later be judged unlawful.

President Trump’s administration used the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. That law allows the President to respond quickly to national threats, and the White House argues that trade imbalances and foreign practices meet that threshold.

Costco has already paid significant sums on imported products affected by these duties. In its legal filing, the retailer explained that the U.S. Customs and Border Protection rejected its request to delay the liquidation date for certain import entries. Once those entries are finalized, Costco would no longer have the right to contest overpayments.

The company said this creates a serious financial risk. Importers are normally given a six-month window to dispute duty calculations, but Costco notes that the rules for these emergency tariffs remove typical protections and may deny refunds even if courts reject the policy later. Its attorneys say legal action is the only way to ensure repayment rights remain intact while the issue moves through the courts.

Costco is not alone in this legal effort. Numerous U.S. businesses that rely on international supply chains are pursuing lawsuits aimed at preserving access to refunds. Many importers say that unpredictable customs rules and short administrative deadlines make it difficult to comply while protecting their financial interests.

Retail and manufacturing groups have warned that unresolved duties can increase product costs, reduce inventory flexibility, and weaken price competitiveness. The issue affects a wide range of goods, including electronics, household items, clothing, and food products sourced from China, Mexico, Canada, and other trade partners.

Trade data shows that companies have paid an estimated $90 billion in tariffs under the emergency authority since the policy began. Refund decisions tied to these payments now depend heavily on the outcome of cases moving toward the Supreme Court.

Costco argues that its lawsuit is not a challenge to U.S. trade strategy but a necessary step to protect money already paid while the courts decide whether the government had the right to impose these duties without Congress.

Businesses that import goods are watching the case because several companies have already reached similar deadlines with customs. If their entries are marked final before the Supreme Court gives clarity, the money they paid would remain with the government even if the tariff rules change. That creates a financial gap that wasn’t factored into supply and pricing decisions.

Costco is asking the court to confirm that refunds remain possible while the legal process continues. The company says it complied with every tariff requirement since the policy began and should not lose that money simply because the government enforced trade measures that courts may later reject.

Also Read: White House Plans Backup Tariffs Before Supreme Court Decision