Costco is joining dozens of companies suing the U.S.
government to make sure they will receive refunds if the Supreme Court rules against Trump-imposed tariffs.
Costo’s complaint, filed on Friday in the U.S. Court of
International Trade, argues that Trump misused a 1977 law in his move to implement tariffs on products from more than 100 countries. The lawsuit asserts that Congress, not the president,
has the authority to set tariffs, and that Trump exceeded the authority granted to him by the law.
“Costco argues that the Trump administration’s implementation of them
has created chaos,” according to The New York Times. “The tariffs have been
‘threatened, modified, suspended, and reimposed, with the markets gyrating in response,’ the lawsuit says. The lawsuit does not disclose how much Costco has paid in tariffs.”
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In the complaint filed, the retailer said Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs left it uncertain whether businesses can recoup sums
they should not have paid.
“The nation’s largest warehouse club operator said U.S/ Customs and Border Protection denied its request for more time to make final
calculations of tariffs owed, threatening its right to complete refunds even if the Supreme Court rules against Trump,” according to CNN Business. “Other companies that have sued to preserve refunds include Bumble Bee Foods,
Ray-Ban eyeglass maker EssilorLuxottica, Kawasaki Motors, Revlon and Yokohama Tire, court records show.”
Costco’s lawsuit notes a Dec. 15 deadline that could prevent the
tariffs that it has already paid on an estimated basis from being refunded.
“The Trump administration has warned of the potential fallout of having to refund hundreds of
millions of dollars in tariffs if the Supreme Court upholds the lower court rulings that Trump did not have authority under IEEPA to unilaterally impose those duties,” according to CNBC.