Costco Challenges U.S. Tariffs in Court Amid Economic Uncertainty

Costco has filed a lawsuit against the U.S. government in the U.S. Court of International Trade, seeking to preserve its right to a refund of tariffs paid under the International Emergency Economic Powers Act, or IEEPA, enacted during President Donald Trump's administration.

The complaint was filed on November twenty-eighth, twenty twenty-three, as Costco joins a growing number of companies challenging the legality of Trump's tariff program. This legal action occurs in the wake of the Supreme Court hearing arguments on November fifth, twenty twenty-three, concerning these tariffs, with an expedited schedule for a ruling that has yet to be announced.

Costco is not alone; other major corporations, including Revlon, Kawasaki Motors, and EssilorLuxottica, have also initiated similar protective lawsuits. The primary goal of Costco's lawsuit is to ensure it remains eligible for tariff refunds if the Supreme Court ultimately rules against the tariffs.

In its filing, Costco noted that Customs and Border Protection denied its request to extend deadlines for finalizing tariff determinations, a decision that could jeopardize the company’s ability to fully claim refunds later.

While Costco did not disclose the exact dollar amount of tariffs it has paid under the IEEPA, it has indicated in previous statements that approximately one-third of its U.S. sales consist of imported products, with goods from China representing about eight percent of its total U.S. sales.

The ramifications of this legal challenge could extend beyond Costco, potentially affecting other retailers and the broader economic landscape, particularly as businesses continue to navigate the impacts of tariffs amidst ongoing economic uncertainty.