The lawsuit comes ahead of the upcoming Supreme Court decision on the legality of President Trump’s tariffs.
Costco has filed a lawsuit against President Donald Trump’s administration seeking a full refund of the tariffs it paid this year before the U.S. Supreme Court considers the legality of the tariffs.
The lawsuit, filed Friday, also seeks to block the collection of import duties.
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Costco said the tariffs must be addressed immediately because the deadline for refunds of taxes already paid is Dec. 15. The complaint alleges that U.S. Customs and Border Protection denied the company’s request for an extension.
Costco has not said how much it believes should be refunded.
“Importers who have paid IEEPA duties, including Plaintiffs, are not guaranteed a refund of the illegally collected duties absent their own judgment or judicial relief,” the complaint states.
Costco is also seeking a moratorium on further recalls, according to the lawsuit filed in the U.S. Court of International Trade.
“Plaintiffs seek relief from impending liquidation so that their right to a full refund is not jeopardized,” the lawsuit states.
The wholesale warehouse giant joins other large companies, including eyewear maker Ray-Ban and cosmetics company Revlon, who are also suing the administration. Costco is represented by the law firm Crowell & Moring. The company declined Al Jazeera’s request for comment.
“They are applying within the legal deadline to receive (refunds) of (allegedly) illegally collected duties,” Gregory Shafer, a professor of international law at Georgetown University School of Law, told Al Jazeera.
Companies have 180 days to appeal liquidations or unpaid amounts, Schaefer said.
“Customs settlement is the final official calculation and assessment of duties, taxes, and fees levied on imported goods.”
The White House refrained from filing a lawsuit.
In a written statement provided to Al Jazeera, White House Press Secretary Khush Desai said: “The economic consequences of President Trump’s failure to uphold legal tariffs are significant, and this case highlights that fact. The White House looks forward to a swift and appropriate resolution of this matter by the Supreme Court.”
The upcoming Supreme Court decision
The Supreme Court is considering whether the White House has the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA).
This law authorizes the President of the United States to regulate imports in the event of a national emergency. The main question is whether President Trump’s tariffs meet these conditions. The justices heard arguments almost a month ago, in early November, so the date for a ruling is unclear.
Schaefer believes there’s a good chance the courts will rule against the Trump administration.
“It looked like there were at least four no votes,” Schaefer said, referring to Supreme Court Associate Justice Neil Gorsuch, whom Trump appointed during his first term as president. “Given Judge Gorsuch’s concerns, I felt he would vote no.”
“Judging from the interrogation, there is a strong possibility that the decision will be unfavorable to the Trump administration.”
During oral argument at a November hearing, Gorsuch pushed back on the administration’s interpretation of IEEPA.
“As a practical matter, once Congress delegates power to the president, it cannot take it back,” Gorsuch said at the time.
“This is a unilateral move that gradually but continuously strengthens power in the executive branch and moves it away from the people’s elected representatives.”
On Wall Street, Costco stock rose 0.2% in midday trading.
