Costco sues administration over tariffs, seeks refunds if duties struck down

Wholesale retailer Costco filed a complaint on November 28 in the United States Court of International Trade (CIT), arguing that the wide-ranging tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful and that the company should be entitled to a full refund for the duties it already paid.

The lawsuit notes that even if the U.S. Supreme Court strikes down the administration’s global tariff policy — as lower courts already have — importers like Costco may not automatically receive refunds without separate legal action.

Costco joined a growing list of companies — including Bumble Bee Foods, Kawasaki Motors, Revlon and EssilorLuxottica — that have filed similar lawsuits to protect their right to refunds if the tariff policy is overturned.

In its filing, Costco asked the court to block further tariff liquidations and to declare the tariffs unauthorized, arguing that IEEPA does not explicitly grant the president power to impose broad import duties — a power reserved for Congress under the Constitution.

Because the Supreme Court has not yet issued a decision, the outcome remains uncertain — but should the Court rule the tariffs unlawful, companies like Costco will need these lawsuits to recover potentially large sums in refund claims.

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