Costco is taking on Donald Trump over tariff refunds. In its lawsuit, the company stated that the December 15 deadline for completing the “settlement” process is fast approaching. According to the lawsuit, CBP rejected Costco’s request to extend the settlement deadline. Costco is not only challenging the legality of these tariffs but also demanding a refund if the Supreme Court ultimately decides to overturn the controversial duties.
The Supreme Court debated whether President Donald Trump had the legal authority to impose tariffs, citing a law known as the International Emergency Economic Powers Act
Donald Trump’s now infamous tariffs have had negative consequences for the country’s economy, as the data shows. Costco’s lawsuit centers on the accusation that the administration overstepped its authority by imposing widespread tariffs this year. The lawsuit points out that both the Commercial Court and the Federal Circuit Court of Appeals, which reviewed the lawsuits against Trump’s tariffs before the case reached the Supreme Court, have warned that “an importer may lack the legal right to recover duty refunds for entries that have been cleared, even when the underlying legality of a tariff is later found to be illegal.”
In November, the Supreme Court debated whether President Donald Trump had the legal authority to impose tariffs, citing a law known as the International Emergency Economic Powers Act. The fact is that Trump has imposed tariffs of over 100% on countries with which the United States has virtually no trade relations. In total, according to the data we have, these tariffs have cost U.S. importers up to US$90 billion as of the end of September, according to figures from U.S. Customs and Border Protection (CBP).
Costco thus joins the group of companies that have already demanded a refund from the Trump Administration
Therefore, the largest US retail chain is demanding a refund of the tariffs it has paid since Trump approved them in April. Meanwhile, anticipating potential refunds, many companies have privately requested an extension from CBP for the date their tariff payments will be considered final, a process that could take several months to complete due to the complexity of the tariff code. Costco thus joins the group of companies that have already demanded a refund from the Trump Administration should the Supreme Court declare the Trump Administration’s main economic measure of 2025 illegal.
Costco justifies the lawsuit as necessary “to ensure its right to a full refund is not jeopardized”
The situation is serious, as Costco, the country’s largest retailer, has decided to take a stand to fight this tariff battle. Trump, who referred to the case in a Social Truth article last month as “life or death for our country,” could also take steps to make it more difficult for companies to obtain refunds, should the need arise. For its part, Costco justifies the lawsuit as necessary “to ensure its right to a full refund is not jeopardized.”
According to experts, the Supreme Court is likely to reach a decision much faster than expected, given the importance of the case. If the court were to overturn the tariffs, American companies that purchased goods abroad and paid them would be entitled to refunds. Another potential problem would arise when, in this scenario, so many companies would have to issue these refunds.
Finally, this issue is highly relevant because Costco is a giant company that depends on the country’s economy and is now directly confronting the Trump administration. This is not only because it is suing over a situation created by the Republicans, but also because it has openly stated that the tariffs “were imposed hastily, causing market disruptions.” Costco’s position is clear.