Costco Wholesale Corporation is taking the federal government to court in an effort to stop President Donald Trump’s emergency tariffs and reclaim millions in duties it says were improperly collected on imported goods.
According to FOX Business, the lawsuit, filed in the Court of International Trade, challenges the president’s use of an emergency-powers statute to impose tariffs on products from China, Mexico, Canada, and numerous other countries.
The filing states that the law Trump invoked does not permit the president to create or raise tariffs.
Costco says it has been paying these duties throughout the year but is now running up against a critical deadline that could prevent it from recovering the money.
Under federal procedure, Customs and Border Protection begins finalizing — or “liquidating” — import entries on or after Dec. 15.
Once an entry is liquidated, the duty total becomes locked in, and companies may lose their ability to challenge or reclaim those payments.
The retailer says one of its entries has already been liquidated, and others are fast approaching the cutoff. That looming deadline prompted Costco to file its case without delay.
In the lawsuit, Costco asks the court to rule the tariff orders invalid, bar Customs from applying the emergency tariffs to future shipments, and require the government to refund all duties already paid under the program.
Costco’s challenge places the company among a growing list of businesses contesting the legality of Trump’s tariff actions.
Learning Resources, Inc., a manufacturer of educational toys and classroom supplies, sued earlier this year, warning that the emergency tariffs would sharply increase its annual duty costs.
V.O.S. Selections, Inc., a wine and spirits importer, has already secured significant court victories striking down the tariff orders, pushing the broader issue up to the Supreme Court.
Other importers — including clothing brands, automotive-parts suppliers, and consumer-goods distributors — have filed similar challenges, arguing the emergency tariffs caused sudden price hikes and supply-chain disruptions they could not absorb.
Costco’s suit leans on several of those earlier rulings. Both the Court of International Trade and the Federal Circuit previously determined that the emergency-powers law used by Trump does not authorize tariffs.
But the company argues those wins do not automatically guarantee refunds unless each importer files its own case before its entries are finalized.
The Supreme Court heard arguments on the larger legal question last month, with a decision expected soon.
That ruling could shape the pace of Costco’s lawsuit — and determine whether dozens of other companies will have a chance to recoup duties they contend were imposed without legal authority.
