Costco sues US to preserve tariff refunds if Trump loses appeal

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Wholesale retail giant Costco has sued the federal government to ensure it will receive a “complete refund” on import duties if the Supreme Court rules against President Donald Trump’s sweeping tariffs.

The lawsuit, filed in the U.S. Court of International Trade in New York on Nov. 28 and reviewed by USA TODAY, asked the court to find Trump’s use of the International Emergency Economic Powers Act to impose tariffs as unlawful.

Costco, the largest warehouse club operator in the United States, said it has been the “importer of record” for products affected by the tariffs, but did not provide a specific dollar amount it is seeking in damages. The corporation noted in the filing that the suit was necessary because importers are not guaranteed to receive a refund if the high court strikes down the tariffs, unless they sue.

Costco also claims in the lawsuit that Customs and Border Protection (CBP) denied its request to delay the calculation of the total tariffs that it owes. The lawsuit claims that Costco’s ability to receive a refund will be significantly impacted if those calculations are completed.

The suit is separate from the larger case challenging Trump’s tariffs that the Supreme Court heard on Nov. 5.

Other companies have sued to preserve refund rights, but the Issaquah, Washington-based retail warehouse club operator is among the largest to sue the administration so far. Others that have sought to protect tariff refunds include Bumble Bee Foods, eyeglass giant EssilorLuxottica, Kawasaki Motors, Revlon, and Yokohama Tire, court records show.

Costco and the CBP did not immediately respond to USA TODAY’s requests for comment on Dec. 1.

Trump touts tariffs, so why are small businesses they suing to stop them?

‘Razor-close case’

During nearly three hours of debate on Nov. 5, Supreme Court justices questioned whether Trump has the power to impose sweeping tariffs on most imports using the 1977 International Emergency Economic Powers Act. Several legal experts said the justices’ questions reveal a lot about where they stand on Trump’s policy.

Ashley Akers, a former Justice Department attorney now with the law firm Holland & Knight, previously told USA TODAY that she heard a “notable skepticism from justices across the ideological spectrum.”

“Overall, it felt like a strong day for the tariff challengers, though it feels like this will be a razor-close case,” Akers said.

Several justices were concerned that if they sided with Trump, Congress would lose control over tariffs, even though the Constitution gives that power to lawmakers, said Curtis A. Bradley, an expert on foreign relations law at the University of Chicago Law School.

Oliver Dunford, an attorney with the libertarian Pacific Legal Foundation, said the case is complicated enough without a majority of the court focusing on just one legal argument.

“If I had to guess,” Dunford said, “I’d guess that the court will rule against the president without agreeing on the reason.”

The Supreme Court took the tariff case on an accelerated basis, but has not said when it will rule.

Contributing: Maureen Groppe, Bart Jansen, and Aysha Bagchi, USA TODAY; Reuters

This article originally appeared on USA TODAY: Costco sues US to preserve tariff refunds if Trump loses appeal