Costco has filed a lawsuit against the Trump administration, seeking a refund on tariffs it has already paid and asking the court to block any future collections while a major Supreme Court case is still pending. The legal action comes as the company faces a key December 15 deadline that could make those tariffs permanent unless a court intervenes.
The suit, filed Friday in the U.S. Court of International Trade, focuses on tariffs imposed by President Donald Trump using the International Emergency Economic Powers Act (IEEPA). These include the so-called “reciprocal tariffs” on products from U.S. trading partners, and the “fentanyl tariffs” aimed at imports from Canada, China, and Mexico.
Costco says it has already paid significant amounts under these tariffs but hasn’t been told exactly how much could be refunded if the Supreme Court rules in its favor. The company argues that unless the tariffs are halted and its refund rights protected, it could permanently lose access to those funds—even if the Court later decides the tariffs were unlawful.
According to the filing, U.S. Customs and Border Protection denied Costco’s request to delay the “liquidation” process—a final step that locks in the amount of duty assessed on imports. Once an import is liquidated, it becomes much harder to challenge the charges or request a refund, even if a court later finds the underlying law invalid.
BREAKING: Retail giant Costco has filed a lawsuit against the Trump administration, demanding a refund on tariffs imposed under federal policy that they argue unlawfully drove up costs.
Costco claims the tariffs unfairly inflated their costs and forced them to pass price… pic.twitter.com/YjAp6L3aLH
— Brian Allen (@allenanalysis) December 2, 2025
BREAKING: Retail giant Costco has filed a lawsuit against the Trump administration, demanding a refund on tariffs imposed under federal policy that they argue unlawfully drove up costs.Costco explained that while importers normally have six months to protest a liquidation, not all liquidations are legally challengeable. That means without this lawsuit, the company might have no path to recover any payments—even if the tariffs are thrown out later.
The company joins dozens of others who have filed similar cases. Many businesses are concerned that if the Supreme Court rules against the Trump administration, they’ll still be left with no way to reclaim what they paid unless they filed individual legal actions.
Back in August, the U.S. Court of Appeals for the Federal Circuit ruled 7-4 that the IEEPA did not give President Trump the power to impose tariffs on his own. The court emphasized that, under the Constitution, the authority to impose taxes and tariffs belongs solely to Congress. The Trump administration appealed that decision to the Supreme Court, which heard oral arguments on November 5.
During those arguments, several justices seemed skeptical about the administration’s claim that the president can act alone to levy tariffs under emergency powers. However, the Court has not yet issued a ruling or said when it might.
In the meantime, Costco is arguing that it can’t afford to wait. In its suit, the company said that unless the courts intervene, importers like Costco will be locked out of refunds for duties that may have been improperly collected.
A White House spokesperson, Kush Desai, responded to the legal filing by warning of the broader economic impact. “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous, and this suit highlights that fact,” Desai said. “The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”
Costco just sued the Trump administration over tariffs, begging for billions back while quietly jacking up prices on everything. I hope this whole stunt backfires spectacularly, and customers finally wake up and take their money to literally anywhere else in America!! pic.twitter.com/rniC1vLdWL
— Anna
(@realAnn_29) Costco has not yet publicly commented on the suit, and CNBC has confirmed it has reached out for a statement.
The Trump administration continues to argue that the tariffs are legal under IEEPA and are a necessary tool to deal with unfair trade practices and threats like the international drug trade. However, the legal debate now centers on whether the president can use emergency powers to take actions that would normally require congressional approval.
If the Supreme Court sides with the lower courts and rules against the administration, the federal government could be forced to refund hundreds of millions of dollars in tariffs to U.S. companies that challenge the collections in time. For Costco and many other importers, the next few weeks could decide whether they see that money again.
