Costco is taking the Trump administration to court, demanding a refund for tariffs it calls illegal, NBC News reports. In a lawsuit filed with the Court of International Trade, the retail giant argues that President Trump's tariffs—imposed under the International Emergency Economic Powers Act (IEEPA)—were not authorized by the law, and is requesting a "full refund" of all duties paid under the president's "reciprocal" tariff orders. "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," the company's lawyer wrote in the suit.
The company did not specify the financial impact in its filing, but federal data shows importers have paid almost $90 billion in tariffs under IEEPA as of late September. Costco's CFO, Gary Millerchip, previously reported that about one-third of the company's US sales come from imported goods, with imports from China making up 8% of total US sales.
Millerchip noted that Costco has absorbed the cost of tariffs on key staples like pineapples and bananas, opting not to raise prices for members. The Supreme Court is currently reviewing the legality of the tariff program, and justices from across the ideological spectrum have expressed skepticism about the government's position. Costco's lawsuit seeks to secure refunds for the company if the high court rules the tariffs are illegal, the BBC reports.
Lower courts have previously ruled against the administration's use of the IEEPA for tariffs, but have allowed the duties to remain in place while legal challenges continue. Costco's lawsuit joins a growing list of major companies—including Revlon, EssilorLuxottica, Kawasaki, Yokohama Tire, and, per Fox Business, Learning Resources and V.O.S. Selections—seeking refunds through the courts, as the total amount collected in tariffs by the government reached $205 billion by the end of October.
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