Costco seeks tariff refund in new lawsuit against Trump administration
Costco Wholesale has joined the growing list of companies suing the Trump administration over tariff policies. The big-box chain is asking the Court of International Trade to consider all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful.
In the filing, Costco is asking for a full refund of all duties it paid under the act since President Donald Trump signed an executive order imposing what he called ”reciprocal tariffs.”
“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 lawyer writes in the lawsuit.
Tariff legal challenges
The lawsuit comes amid other legal challenges to Trump’s tariff policy. The Supreme Court is reviewing the legality of Trump’s sweeping tariff agenda. However, justices have expressed skepticism about the government’s case for keeping them in place, according to NBC News.
When Trump implemented the tariffs, he became the first to use the IEEPA to do so, prompting some to question their legality. Lower courts ruled against the administration’s use of the law. However, they kept the tariffs in place until the Supreme Court rules on the matter.
Costco’s case
Costco did not say how much the duties have cost the company, but NBC News reports importers have paid nearly $90 billion under the IEEPA law through late September.
Costco also previously noted that about a third of its U.S. sales are imported products. However, the company has not raised prices for consumers, specifically on imported fresh produce, because they are key staple items for its customers.
“We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense and consolidating our buying efforts globally to lower the cost of goods across all our markets,” Costco’s chief financial officer, Gary Millerchip, said.
Similar lawsuits
Costco’s lawsuit joins the growing list of other major companies seeking tariff refunds in court.
Revlon, EssilorLuxottica, Kawasaki, Bumble Bee, Yokohama Tire and many other smaller firms have filed similar lawsuits, NBC News reports.
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Ella Rae Greene, Editor In Chief
