Costco sues over Trump tariffs to secure refunds

Costco sues over Trump tariffs in the court of international trade, seeking protection of potential tariff refunds as deadlines near. Evidence shows the filing asks the trade court to invalidate duties imposed via emergency powers and to order a full refund of duties paid, according to available reports from Reuters and others. The move arrives as importers rush to preserve rights before entries become final.

Evidence shows Costco’s filing mirrors other importers’ petitions. The company says it wants a pathway to comprehensive refunds if higher courts strike the duties. Reporting notes the suit targets IEEPA-based actions and the downstream customs treatment of its entries.

Why Costco sues over Trump tariffs now

The complaint argues that IEEPA does not clearly authorize tariff-setting. As a result, it asks the court to deem the emergency tariff orders unlawful. “IEEPA does not clearly authorize the President to set tariffs,” the filing states, as reported by NBC and Fox Business.

That framing puts the legality of ieepa tariffs at the center of the case. It also explains why Costco moved quickly as deadlines closed in. If the orders fall, the company wants refund eligibility locked in.

Timeline: filings, Supreme Court arguments, and deadlines

Dozens of companies began filing in late October, according to Bloomberg’s count. Costco filed this week, joining an expanding wave in the trade court. Meanwhile, the Supreme Court heard arguments last month in the supreme court ieepa case, but the justices set no decision date, Reuters reported.

Therefore, timing matters. Importers face customs liquidation deadlines that finalize duty assessments. Because liquidation limits refund options, companies are filing before their entries close. More filings are expected while the high court deliberates.

Refund stakes and customs liquidation deadlines

The core stakes are simple: preserve tariff refunds now, or risk losing them at liquidation. Costco says U.S. Customs and Border Protection denied extra time before liquidation, which could cut off refunds if the orders are later invalidated. Consequently, the company sued to keep those options alive while courts decide.

The contradiction: importers must choose litigation before the Supreme Court rules. Yet the supreme court ieepa case could change everything. If the justices strike the duties, refund administration will become the next scramble.

Who else is suing over the IEEPA tariffs

Bloomberg and Reuters list numerous importers with parallel actions, including well-known brands. These plaintiffs are pursuing similar relief in the court of international trade. The strategy is aligned: file now, protect later refund claims.

Follow the money: many of these companies import high-volume goods. Even small percentage rates can add up fast across a year of entries. So the litigation costs may be outweighed by potential recoveries.

How Costco mitigated tariff costs

Costco has tried to blunt the impact. According to reporting, it leaned more on local sourcing and its Kirkland brand. It also reduced its supplier base and selectively raised prices on discretionary items, while avoiding hikes on staples where possible.

Evidence shows leadership has emphasized mitigation over pass-through. The approach seeks to protect member trust while balancing margin pressure. Still, tariff exposure persists so long as duties remain in force.

Why the tariffs were imposed and how much was collected

The administration justified the measures by declaring the trade deficit a national emergency, according to The Washington Post. Duty collections tied to ieepa tariffs reached about $88 billion through September 2025, the paper reported, with long-run projections far higher. Total CBP duties roughly doubled in fiscal 2025, underscoring the financial scale.

Follow the money: larger collections increase the stakes of any reversal. If the orders are invalidated, refund administration could be complex and slow. Agencies would need processes to unwind assessments at scale.

What’s next

No one knows when the Supreme Court will rule. However, outcomes range from fully upholding the duties to narrowing or voiding them. If the latter occurs, tariff refunds could unlock for timely filers, subject to documentation and liquidation status.

Meanwhile, customs liquidation deadlines will keep driving decisions. Because entries are closing daily, more companies may file in the trade court to preserve rights. And if Costco sues over Trump tariffs proves strategically sound, other importers will follow its template.