Multinational retailer Costco has taken the unusual step of suing the US government to ensure it can recover import duties should the Supreme Court ultimately rule that former President Donald Trump lacked the legal authority to impose sweeping emergency tariffs under the International Emergency Economic Powers Act (IEEPA).
The retailer filed the lawsuit in the US Court of International Trade over the Thanksgiving holiday, arguing that despite earlier rulings determining the tariffs were unlawful, importers may not be automatically entitled to refunds without securing their own judgments.
Costco said its business had been materially harmed by the levies and warned it risked losing its right to reimbursement if it did not act before a 15 December 2025 deadline.
The retailer is one of several companies pre-emptively seeking to secure legal standing should the tariffs be struck down.
Global cosmetics group Revlon, eyewear maker EssilorLuxottica, motorcycle producer Kawasaki, canned-foods company Bumble Bee, Japanese auto-parts supplier Yokohama Tire and a range of smaller firms have filed similar lawsuits.
Retailer argues refunds are not assured
Costco said in its filing to the US Court of International Trade that US Customs and Border Protection refused its request to delay the Dec. 15 liquidation deadline — the point at which tariffs on imported goods are finalised.
The lawsuit noted that, although importers generally have six months to challenge a liquidation, “not all liquidations are protestable.”
In its filing, Costco said a separate legal action was “necessary” because a favourable ruling from the Supreme Court would not, on its own, compel the government to return duties it had collected.
“This separate action is necessary, however, because even if the IEEPA duties and underlying executive orders are held unlawful by the Supreme Court, importers that have paid IEEPA duties, including Plaintiff, are not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief,” it said in its lawsuit.
“This Court and the Federal Circuit have cautioned that an importer may lack the legal right to recover refunds of duties for entries that have liquidated, even where the underlying legality of a tariff is later found to be unlawful,” the suit said.
Costco did not disclose the amount it seeks, but data from the US customs agency indicates that importers have paid about $90 billion in IEEPA-linked duties as of late September.
How has the case progressed
The case has moved rapidly through the courts.
In May, the Court of International Trade determined that Trump overstepped his authority by invoking emergency powers to impose what were effectively global tariffs.
The US Court of Appeals later affirmed the decision in a divided 7–4 ruling, emphasising that the Constitution grants the power to levy taxes and tariffs exclusively to Congress.
“Tariffs are a core Congressional power,” the ruling said.
During oral arguments last month, a majority of Supreme Court justices appeared doubtful of the administration’s argument that the IEEPA gives the president broad discretion to impose tariffs without legislative approval.
The court took up the case on an expedited schedule, though it remains unclear when a ruling will be issued.
The Trump administration has maintained that the president acted within his authority and that an unfavourable ruling could jeopardise the government’s ability to negotiate effectively with foreign partners.
It also warned that the Treasury could face the prospect of returning hundreds of millions of dollars if the lower courts’ decisions stand.
“The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact,” White House spokesman Kush Desai said in a statement to CNBC.
“The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter,” Desai said.
Trump, meanwhile, has defended the tariff regime, recently saying the US was “taking in Trillions of Dollars” and promising Americans a substantial dividend from the revenue collected.
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