Costco sues Trump administration over emergency tariffs, seeks refunds

Costco filed a federal lawsuit on Friday, challenging the emergency tariffs issued by President Donald Trump earlier this year, claiming all tariffs collected under the International Emergency Economic Powers Act (IEEPA) were unlawful.

In a complaint filed in the U.S. Court of International Trade (CIT), Costco is asking the court to order refunds for all IEEPA-based tariffs Costco has paid, including interest on those payments, according to KIRO 7.

Costco files lawsuit arguing IEEPA tariffs are unlawful

The Issaquah-based retailer argued that Trump’s use of IEEPA to set tariffs on imports was unlawful, claiming the act does not grant the president that authority.

“Because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand, and the defendants are not authorized to implement and collect them,” Costco’s lawyer wrote in the lawsuit, according to NBC News.

The lawsuit challenges several executive orders signed by President Trump that enacted new tariffs on goods imported from countries including China, Mexico, and Canada, among others. Additionally, the complaint alleges that the tariffs were imposed once Trump declared a national emergency on illegal drug trafficking, border activity, and U.S. trade deficits.

In total, Costco is asking the court to rule that the tariffs are unlawful, block the government from collecting future duties, order a refund for all IEEPA-based tariffs the company has paid, with interest, suspend future liquidations that could prevent recovery of funds, and permanently ban CBP from enforcing the challenged tariff codes on Costco’s imports.

Earlier this year, the CIT ruled that the Trump Administration acted beyond its authority, and in August, the Federal Circuit upheld that ruling.

On Nov. 5, Supreme Court justices reviewed the legality of Trump’s sweeping tariffs, while questioning whether Trump legally acted under the IEEPA to impose tariffs. A Supreme Court ruling is expected to be delivered soon; however, Costco stated it cannot wait for a ruling because its tariff-affected imports are scheduled to liquidate as early as Dec. 15.

Liquidation finalizes the duties owed on imports, and once that happens, Costco believes its chances of recovering any overpayments would be severely limited.

One of Costco’s import entries has already been liquidated, according to the filing. On Nov. 18, U.S. Customs and Border Protection (CBP) denied Costco’s request to delay its liquidation, which the company claimed forced it to take legal action.

Costco joined several other businesses that have filed similar suits against the Trump Administration to recoup funds spent on tariffs, including eyeglass makers Ray-Ban and EssilorLuxottica, and Kawasaki Motors, among others, according to court records.

Costco did not reveal how much in duties the company owes, although importers have already paid nearly $90 billion under the IEEPA law, according to CBP data from September. Notably, the government has also collected approximately $205 billion in both new and pre-existing tariffs since the beginning of 2025.

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