Costco Sues U.S. Government to Secure Potential Refunds as Supreme Court Weighs Trump Tariff Authority

By Blessing Nweke

Multinational retail giant Costco has filed a lawsuit against the U.S. government seeking to safeguard its ability to reclaim import duties should the Supreme Court rule that President Donald Trump lacked the authority to impose emergency tariffs without congressional approval.

The suit, lodged over the Thanksgiving holiday in the U.S. Court of International Trade, argues that Costco’s business has been harmed by the tariffs and warns the company may never recover the millions it paid unless it obtains a separate judicial order. Lawyers for the retailer wrote that “a separate action is necessary” because a refund is not guaranteed “in the absence of their own judgment and judicial relief.”

Costco did not disclose how much money it is seeking, but U.S. customs data indicates importers have paid roughly $90 billion in tariffs tied to Trump’s use of the International Emergency Economic Powers Act (IEEPA) as of late September. The company moved to file its claim before a December 15, 2025, deadline, after which recovering funds could become significantly harder.

Two lower courts—the U.S. Court of International Trade in May and the U.S. Court of Appeals later in the year—have already ruled that Trump exceeded his authority by invoking emergency powers to impose global tariffs. The Supreme Court is now weighing the issue, and justices appeared sceptical during oral arguments last month about the legality of the president acting without congressional approval.

Trump administration lawyers maintain that the IEEPA grants broad executive powers that extend to tariff actions. They warn that overturning the policy would undermine U.S. leverage in negotiations and cost the Treasury billions already collected.

White House spokesperson Kush Desai said the stakes are high, arguing that “the economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous.”

Trump has defended the tariffs, claiming last month that the U.S. was “taking in Trillions of Dollars” and pledging a $2,000 per-person dividend if the duties are upheld.