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Costco Files Federal Lawsuit Seeking Tariff Refunds as Supreme Court Review Looms

Updated (2 articles)

Costco Files Lawsuit in Manhattan Federal Court Costco filed a complaint on Dec 2, 2025 in the U.S. Court of International Trade, demanding a guarantee of refunds for duties paid under tariffs imposed during President Trump’s second term [1][2]. The suit argues the tariffs violated the International Emergency Economic Powers Act and seeks full reimbursement of those costs [1][2]. The filing marks the most high‑profile corporate challenge to the administration’s trade measures [1].

Supreme Court Review Centers on Emergency Powers The Supreme Court heard oral arguments on Nov 5, 2025, with justices probing whether Trump lawfully invoked the 1977 emergency powers statute to impose the tariffs [2]. Legal analysts anticipate the Court may strike down many of the tariffs, a view echoed by Justice Amy Coney Barrett’s warning about chaotic refund processes [1]. No decision date has been set, leaving the outcome uncertain for plaintiffs [2].

Other Corporations Join Refund Litigation Court records list Bumble Bee Foods, EssilorLuxottica, Kawasaki Motors, Revlon and Yokohama Tire among the dozens of firms pursuing similar refund claims [2]. Earlier reports note Amazon, Walmart and Apple also faced tariff pressure, with Apple later securing a $100 billion investment pledge that led to withdrawal of its threat [1]. Costco remains the largest publicly traded company actively litigating the issue [1].

Customs Denies Extension, Heightening Refund Uncertainty U.S. Customs and Border Protection rejected Costco’s request for additional time to finalize tariff calculations, potentially obstructing any refund even if the Supreme Court rules against the tariffs [2]. CBP offered no comment on the denial, intensifying concerns over the company’s ability to recover paid duties [2]. The agency’s stance underscores the procedural hurdles plaintiffs must overcome [2].

Costco’s Mitigation Measures and Financial Scale Costco reported $275.2 billion in revenue for the fiscal year ending Aug 31, 2025, underscoring its economic stake in the dispute [2]. In response, the retailer has trimmed its supplier base, boosted domestic sourcing, and expanded its Kirkland private‑label line to reduce reliance on imported goods [2]. These steps aim to cushion the retailer from future tariff shocks [2].

Public Opposition Grows Against Tariffs CBS News poll from late Oct 2025 found only 38 % of Americans supported the new tariffs, while 62 % opposed them, reversing a slight majority favorability recorded in Nov 2024 [1]. The shift reflects broader consumer discomfort with trade policies that raise prices [1]. Poll results add political pressure to the legal challenges [1].

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Timeline

Nov 2024 – A CBS News poll shows a slight majority of Americans support new tariffs, highlighting early public backing for trade measures before sentiment shifts (​[1]​).

Oct 2025 – A follow‑up CBS poll finds only 38 % favor new tariffs while 62 % oppose them, indicating growing consumer discomfort with the administration’s trade policy (​[1]​).

2025 (Trump’s second term) – The Trump administration imposes a series of import duties under the International Emergency Economic Powers Act, which Costco later labels unlawful and seeks refunds for (​[1]​).

Nov 5, 2025 – The U.S. Supreme Court hears oral arguments on whether President Trump legally invoked the 1977 emergency‑powers law to levy the tariffs, a pivotal moment for the pending refund litigation (​[2]​).

Dec 2, 2025 – Costco files a complaint in the U.S. Court of International Trade in Manhattan demanding a guarantee of refunds if the Supreme Court overturns the tariffs, citing its $275.2 billion FY revenue and the need to recoup duties paid (​[2]​).

Dec 2, 2025 – U.S. Customs and Border Protection denies Costco’s request for an extension to finalize tariff calculations, threatening the company’s ability to obtain refunds even if the tariffs are struck down (​[2]​).

Dec 2, 2025 – In its lawsuit, Costco seeks a full refund of all duties imposed on imported goods and highlights mitigation steps such as cutting its supplier base, boosting local sourcing, and expanding its Kirkland brand (​[2]​).

Late 2025 / 2026 (expected) – Legal analysts predict the Supreme Court will likely strike down many of Trump’s tariffs; Justice Amy Coney Barrett warns the refund process could become “chaotic and difficult to administer” (​[1]​).

2025 (unspecified date) – Apple secures a $100 billion investment pledge and sees the threatened 25 % tariff withdrawn after corporate pressure, illustrating mixed outcomes for firms confronting the trade policy (​[1]​).

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