Costco files lawsuit against Trump's tariffs to seek reimbursement

Costco has filed a lawsuit seeking reimbursement for tariffs imposed during the Trump administration. The retailer is contesting duties enacted under the International Emergency Economic Powers Act (IEEPA) and is requesting a full refund of all payments made.

The lawsuit names the United States government, the U.S. Customs and Border Protection (CBP) agency, and CBP Commissioner Rodney S. Scott as defendants. Costco has asked the U.S. Court of International Trade to invalidate the tariffs enacted by President Trump via executive order and to ensure refunds for companies that paid import duties.

In the complaint, filed on Friday, November 28, Costco described the payments as full refund of duties collected under Trumps emergency-powers tariffs, which were presented as reciprocal measures. The filing references a prior case, VOS Selections, Inc. v. Trump, which reached the U.S. Supreme Court earlier in November.

The complaint emphasizes that even if the Supreme Court rules the IEEPA tariffs unlawful, importers like Costco are not automatically entitled to refunds without separate legal action. It explains the liquidation process, in which Customs completes a final review to determine the official duty for shipments. This process, typically concluded within one year of entry, allows Customs to either refund the importer or demand additional payments.

Costco noted that liquidation of its imports could begin as early as December 15, and that the CBP has already denied a request to extend this period. The company seeks protection from these liquidations to safeguard its claim for a full refund.

Courts, including the Court of International Trade and the District Court for the District of Columbia, have previously ruled IEEPA tariffs illegal, citing constitutional limits that grant Congress exclusive authority to levy taxes and collect duties. The Federal Circuit Court of Appeals reaffirmed the ruling in August, and the case has now reached the Supreme Court for final deliberation.

The lawsuit does not disclose the total duties Costco has paid. Treasury Secretary Scott Bessent previously indicated in a Supreme Court filing that the government could owe up to $1 trillion in tariffs if the courts rule against the Trump administration. Earlier this year, Costco CEO Ron Vachris noted that roughly one-third of the companys U.S. sales come from imports, with less than half sourced from China, Mexico, and Canada, before the implementation of Trumps April 2 Liberation Day tariffs.

Costco, the White House, and CBP did not immediately comment on the lawsuit.

Author: Sophia Brooks