Costco is suing Trump to avoid getting stuck with the tab on tariffs

The lawsuit, filed Friday, said Costco risks losing the money it has paid under the tariff regime even if the levies are eventually ruled as illegal. Trump declared the tariffs as an emergency measure under powers he says he has under the International Emergency Economic Powers Act (IEEPA).

The company pointed to a deadline on Dec. 15 that could block it from recouping any overpayments, saying U.S. Customs and Border Protection denied its request to extend the liquidation date. The filing did not specify how much Costco believes it is owed.

Importers generally have six months to challenge liquidation decisions, but Costco said some tariff assessments can’t be contested after the fact, leaving companies vulnerable to losing refunds if the duties are later ruled invalid. Costco’s lawyers said a “separate action is necessary” if it is not guaranteed a refund “in the absence of their own judgment and judicial relief”.

“This Court and the Federal Circuit have cautioned that an importer may lack the legal right to recover refunds of duties for entries that have liquidated, even where the underlying legality of a tariff is later found to be unlawful,” the suit said.

“The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact,” said White House spokesman Kush Desai, per CNBC.

“The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”

Costco, the world’s third-largest retailer, is one of dozens of firms pursuing similar actions aimed at preserving their ability to recoup payments tied to the “reciprocal” tariffs imposed on a wide range of trading partners, including Canada, China, and Mexico. 

Trade data from the U.S. customs agency shows importers had already paid about $90 billion under the emergency tariff regime as of late September.