Costco sues federal government over Trump emergency tariffs for refunds

Wholesale retailer Costco has sued the federal government to block emergency tariffs imposed by President Donald Trump and recoup money the retailer says it was improperly required to pay for imported goods.

The case, filed in the International Trade Court, says Trump used the Emergency Powers Act to impose tariffs on goods coming from China, Mexico, Canada and dozens of other countries, even though the law does not allow the president to create or raise tariffs.

Costco says it paid those fees throughout the year and now faces a deadline that could prevent it from getting that money back.

The company says the government will begin finalizing — or “clearing” — its import entries on or after December 15. Once the entry is cleared, the duty amount becomes locked, and importers may lose the ability to dispute or recover these duties.

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Costco says one of its entries has already been completed, and more entries are approaching the deadline, prompting the company to immediately file a lawsuit.

Costco is asking the court to declare the tariff orders invalid, prohibit Customs and Border Protection from applying tariffs to its shipments going forward, and to require the government to return all duties the company has already paid under the emergency tariff program.

The request places Costco among a growing group of companies challenging the legality of Trump’s tariff actions.

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President Donald Trump made remarks regarding reciprocal tariffs during an event in the Rose Garden. (Brendan Smalowski/AFP via Getty Images/Getty Images)

Learning Resources, Inc., a maker of educational toys and classroom products, filed suit earlier this year, warning that emergency tariffs would push its annual fee bill higher.

VOS Selections, Inc., a wine and spirits importer, won key rulings overturning the tariff orders, sending the case to the Supreme Court.

Other importers — including apparel companies, auto parts suppliers and consumer goods distributors — have filed similar challenges, arguing that the tariffs led to sudden cost increases and supply chain disruptions that companies could not absorb.

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Costco’s lawsuit builds on those previous victories. The Court of International Trade and the Federal Circuit previously ruled that the emergency powers law cited by Trump does not allow for tariffs.

But Costco says those decisions alone won’t guarantee refunds for companies unless they file their own cases before finalizing their entries.

FOX Business reached out to Costco with questions regarding the lawsuit.

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The Supreme Court heard arguments on the broader legal issue last month, and a decision is expected soon.

The ruling could determine how quickly the Costco case moves forward — and whether dozens of other companies will be able to seek refunds on tariffs they say were imposed without legal authority.