Costco Sues Trump Administration, Seeks Compensation for Tariff-Related Losses

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2025-12-03

omar-abascal-9Um7Huux0as-unsplash.jpgU.S. retailer Costco has recently filed a lawsuit with the U.S. Court of International Trade, requesting a suspension of certain tariffs while the Supreme Court reviews the legality of tariffs imposed under the Trump administration. The company also seeks assurance that if the tariffs are ultimately ruled unlawful, businesses will be able to recover the duties they have already paid.

According to foreign media reports, Costco argues that the Trump administration invoked the *International Emergency Economic Powers Act* (IEEPA) to impose additional tariffs, creating uncertainty over whether companies can obtain refunds. Even if the Supreme Court later strikes down the tariffs, Costco is concerned that because the “liquidation deadline” is set to expire on December 15, the duties already paid may not be recoverable.

The complaint also asks the court to bar U.S. Customs and Border Protection (CBP) from collecting the tariffs before a ruling is issued, criticizing CBP for refusing to extend the liquidation deadline. In addition to Costco, dozens of companies—including tuna brand Bumble Bee Foods, Ray-Ban parent company EssilorLuxottica, Kawasaki Heavy Industries, Revlon, and Yokohama Tire—have filed similar lawsuits. “Liquidation” refers to the final calculation of duties assessed on imported goods.

The Supreme Court held oral arguments on November 5, questioning whether Trump had lawfully invoked the 1977 *Emergency Powers Act* to impose tariffs, though it has not yet announced a decision date. Costco stated that in response to the tariffs, it has reduced the number of suppliers, increased local sourcing, and strengthened supply for its private label, Kirkland.