A bold fact first: Costco has become the latest and largest company to press for a refund of the tariffs from President Trump’s sweeping import taxes. Unlike waiting on further legal developments, Costco has taken its claim directly to court to recover the duties it paid.
Earlier this year, two key federal courts in Washington, the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, ruled that Trump’s most expansive tariffs may be illegal. The matter has since moved up to the Supreme Court. During a November 5 hearing, several justices questioned whether the president possessed broad authority to declare national emergencies that would justify imposing tariffs on goods from virtually every country.
If the Supreme Court eventually overturns the tariffs, importers could be eligible for refunds of the levies they’ve already paid. Brent Skorup, a legal fellow at the Cato Institute, explained that it remains uncertain how refunds would be granted or exactly how large they could be. Nonetheless, the potential for refunds has prompted numerous companies, including Costco, to file actions in the U.S. Court of International Trade to position themselves for any possible reimbursements.
Costco filed its complaint in the U.S. Court of International Trade in New York last week, asking for the money to be returned now to preserve its right to a full refund. The retailer warned that it might be difficult to obtain a refund after Customs and Border Protection completes liquidation of tariff bills, a process Costco says is set to begin on December 15.
Other firms have made similarly timed arguments in court, such as Revlon and Bumble Bee Foods (the canned seafood and chicken producer).
To date, the tariffs under scrutiny have raised roughly $90 billion. President Trump warned in August that losing the tariffs would devastate the U.S. economy and could trigger a crisis reminiscent of the 1929 Great Depression.
Should you want more context, this story is part of a broader debate about the legality and economic impact of tariffs and presidential emergency powers during global trade tensions.
