NEED TO KNOW
- Costco is suing the Trump administration over its widespread tariffs and seeking a refund for all duties paid as a result
- The lawsuit states that Trump’s tariffs are unauthorized under the IEEPA, as ruled in a previous suit
- The wholesale retailer is the latest in a growing list of companies suing the Trump administration over alleged illegal implementation of tariffs
Costco is suing the Trump administration over funds collected as a result of the president’s widespread tariffs.
The wholesale grocery store chain filed a lawsuit against the Trump administration on Nov. 28, alleging that the slew of tariffs President Donald Trump has implemented since his return to office in February are unlawful. Per the filing, Costco is seeking a refund of all tariffs paid.
The lawsuit, which was filed in the United States Court of International Trade, states that Trump’s tariffs — which he justified under the International Emergency Economic Powers Act (IEEPA) — are unauthorized by the IEEPA, as the court determined earlier in a separate case, V.O.S. Selections, Inc. v. Trump.
Costco’s lawsuit asks the court to rule that “the IEEPA duties imposed by Defendants, and the underlying executive orders that directed them, are unlawful.”
Costco, in its filing, says it is bringing its own lawsuit because the prior ruling about the legality of the tariffs. Dozens of other companies have brought similar lawsuits against the Trump administration regarding its tariffs, but Costco is “not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief,” per the filing.
In a statement to PEOPLE, White House spokesman Kush Desai wrote, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact. The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”
Costco is the latest business to file a suit against the Trump administration regarding its tariffs. Cosmetic company Revlon, Japanese motor company Kawasaki Motors, canned foods retailer Bumble Bee, and eyeglasses maker EssilorLuxottica have all filed similar suits, per The Independent and NBC News.
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Trump first enacted sweeping tariffs shortly after his return to office and has since implemented duties on almost all foreign countries. He is the first president to use the IEEPA law to impose import duties. While lower courts have ruled against the administration’s use of the law, the tariffs have been kept in place while the legal process unfolds.
The tariffs have been a point of controversy throughout Trump’s second term, and have impacted the affordability of everything from holiday decor, groceries, weddings, cars, alcohol and more.
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