Costco joins lawsuits against Trump's tariffs at US court

LOS ANGELES: As the U.S. Supreme Court deliberates on whether President Donald Trump's tariffs were lawfully imposed under the International Emergency Economic Powers Act (IEEPA), retail giant Costco joined a growing number of companies filing lawsuits at the U.S. Court of International Trade.

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Costco filed a lawsuit to recover tariffs it claims were unlawfully collected under Trump's trade policies.
Over 70 companies, including Revlon and Kawasaki, have filed similar suits after courts ruled IEEPA tariffs illegal.
Supreme Court is reviewing the case as Trump warns refunds could harm the US economy.

According to a court document filed last Friday, the Washington-based retailer asked the court to issue an order guaranteeing refunds for tariffs it said were unlawfully collected beginning in February.

The refund lawsuits are "necessary ... because even if the IEEPA duties and underlying executive orders are held unlawful by the Supreme Court, importers that have paid IEEPA duties, including Plaintiffs, are not guaranteed a refund for those unlawfully collected tariffs" without a court order, the 17-page filing noted.

Costco became the latest major corporation to challenge the White House's tariff actions, filing a lawsuit against U.S. Customs and Border Protection (CBP), CBP Commissioner Rodney Scott and the United States. CBP is responsible for border security, collecting tariffs, duties and taxes on imported goods.

In recent weeks, a series of major firms -- including cosmetics maker Revlon, motorcycle manufacturer Kawasaki, canned foods seller Bumble Bee -- have filed similar suits seeking refunds.

"The lawsuits mark a new turn in the legal fight over Trump's tariffs, as it's previously been smaller companies filing litigation against the duties, while larger companies have shied away from openly criticizing the policy," Forbes reported Tuesday, adding that court records showed more than 70 companies have already filed lawsuits attempting to initiate the refund process.

In addition to seeking refunds, the companies are asking the Court of International Trade to declare the tariffs unlawful, compel the federal government to return the money already paid, and block the government from imposing Trump's sweeping tariffs in the future.

In earlier cases brought by five small businesses and 12 states, the U.S. Court of International Trade ruled on May 28 that the tariffs implemented under the IEEPA were illegal and ordered their revocation. A U.S. appeals court upheld that ruling in a 7-4 decision on Aug. 29.

The Trump administration appealed to the Supreme Court after losing in the lower courts. The Supreme Court held a hearing on Nov. 5 on the administration's global tariff policy, during which several justices expressed skepticism.

A ruling could come at any time, though it remains unclear when the decision will be issued or whether the court will agree to allow companies to recover previously paid tariffs.

Forbes reported that the Trump administration had described the litigation as an existential threat to the U.S. economy, citing potential revenue losses if tariffs are refunded. Trump claimed the country would be "immeasurably hurt" if the tariffs were overturned and that "our economy will go to hell."