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Costco Files Trade Lawsuit Seeking Refunds as Supreme Court Review Looms

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Costco Files Federal Complaint in Early December Costco lodged a complaint in the U.S. Court of International Trade in Manhattan on Dec 1‑2, 2025, demanding a full refund of duties paid under President Trump’s 2018‑2020 emergency tariffs and arguing the tariffs exceed authority under the International Emergency Economic Powers Act (IEEPA) [1][4][7][8]. The retailer’s counsel, Joyce Adetutu, said the suit secures a judgment before any Supreme Court ruling, preserving Costco’s right to recover payments [2]. The filing makes Costco the most prominent publicly traded company to challenge the tariffs, joining dozens of smaller firms in similar actions [4][7].

Supreme Court Hearing Centers on Presidential Emergency Powers On Nov 5, 2025, the Supreme Court heard oral arguments questioning whether the president can invoke IEEPA to impose sweeping tariffs on “any product, from any country, in any amount, for any length of time” [2][3][7]. Justices expressed skepticism, with Chief Justice Roberts and Justice Gorsuch highlighting potential overreach of executive authority [6][7]. The Court has not set a decision date, but observers note the case could be decided by the end of the term in June 2026 [8].

Tariffs Have Generated Roughly $90 Billion in Treasury Revenue U.S. Customs and Border Protection data show that importers, including Costco, have paid about $90 billion in duties under the contested tariffs as of late September 2025 [2][3][5][7]. This massive sum makes any potential refunds a significant fiscal issue for both the government and affected businesses [1][5]. Legal experts anticipate that a ruling striking down the tariffs would trigger a large‑scale refund process never before attempted.

Customs Liquidation Deadline Puts Refund Claims at Risk CBP will begin tariff liquidation on Dec 15, 2025, after which importers have 180 days to protest the bills [2][3][4]. Costco warned that a delayed Supreme Court decision could close this window, jeopardizing its ability to recover the duties even if the tariffs are later invalidated [3][4]. The agency denied Costco’s request for an extension, heightening the urgency of the lawsuit [4][5].

Industry-Wide Challenge Includes Multiple Major Corporations Alongside Costco, firms such as Bumble Bee Foods, EssilorLuxottica, Kawasaki Motors, Revlon, Yokohama Tire, and others have filed parallel suits to protect potential refunds [1][4][5][7][8]. Collectively, these companies represent a broad cross‑section of U.S. importers seeking relief from what they deem unlawful tariff assessments [1][2][8]. Their coordinated legal actions underscore the widespread commercial impact of the disputed trade policy.

Sources

Timeline

1977 – Congress passes the International Emergency Economic Powers Act (IEEPA), which later becomes the legal foundation for President Trump’s tariff authority and the focus of Costco’s refund lawsuit [8].

2018‑2020 – President Trump imposes sweeping import taxes under emergency powers, generating roughly $90 billion in tariff revenue and prompting multiple corporate challenges [1].

Feb 2025 – The Trump administration issues executive orders imposing a 10 % baseline tariff on most U.S. imports and reciprocal tariffs of 11‑50 % on 57 countries, including Canada, Mexico, and China, expanding the scope of the disputed duties [8].

Early 2025 – The U.S. Court of International Trade and the Federal Circuit rule that Trump’s broad import taxes exceed his IEEPA authority, setting the stage for Supreme Court review [7].

Oct 2025 – A CBS News poll finds only 38 % of Americans support new tariffs, upending earlier public opinion and highlighting consumer backlash against the trade measures [2].

Nov 5, 2025 – The Supreme Court hears oral arguments on the legality of Trump’s tariffs; Justices question whether IEEPA permits tariffs on “any product, from any country, in any amount, for any length of time,” with Gorsuch warning of an executive‑branch power ratchet and Barrett cautioning that any refund process could become chaotic [6][2][8].

Dec 1, 2025 – Costco files a complaint in the U.S. Court of International Trade in Manhattan, seeking a judgment that guarantees refunds of duties paid if the Supreme Court later invalidates the tariffs; the filing occurs before the Dec 15 deadline that could otherwise bar refund claims [4][8][1].

Dec 2, 2025 – Costco’s counsel Joyce Adetutu says the suit “makes sure that if and when the Supreme Court overturns the IEEPA tariffs, which could come as late as the summertime, they have the judgment in place” to secure refunds [5].

Dec 15, 2025 – U.S. Customs and Border Protection begins tariff liquidation, giving importers a 180‑day window to protest; Costco warns the timeline may be shortened if the Supreme Court decision is delayed, threatening its ability to recover funds [5][7].

Dec 2025 (deadline) – Costco meets the statutory filing deadline for its refund action, ensuring its claim remains viable under the pending Supreme Court decision [1].

Late 2025 – June 2026 – The Supreme Court signals it could issue a ruling as early as later 2025, but traditionally decides by the end of the term in June 2026; an adverse ruling could force the Treasury to repay up to $90 billion, with the White House warning of “enormous” economic consequences [1][4].

Ongoing – Costco mitigates tariff exposure by shrinking its supplier base, boosting domestic sourcing, and expanding its Kirkland Signature brand, while firms such as Bumble Bee Foods, EssilorLuxottica, Kawasaki Motors, Revlon, and Yokohama Tire pursue parallel refund lawsuits [3][4].

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