Costco Wholesale Corporation (NASDAQ: COST) recently filed a lawsuit in the U.S. Court of International Trade seeking a full refund of tariffs it has paid this year on imported goods. These tariffs were imposed earlier in 2025 by President Trump under the International Emergency Economic Powers Act (IEEPA), an invocation of emergency powers that many companies now challenge as unlawful. Costco’s complaint presses the court to declare these emergency tariffs invalid and to block further collection while protecting their right to recover all duties already paid. The retailer emphasized urgency, pointing to a December 15th deadline after which government tariff assessments become finalized, making refunds much harder to obtain. With import duties under this program estimated at nearly $90 billion as of September, the stakes for large importers like Costco are significant.
The tariffs under scrutiny include so-called “reciprocal” tariffs, targeting goods imported from many of the world’s trading partners, as well as duties aimed at curbing fentanyl flows from Canada, China, and Mexico. Although ramped up this year, the emergency nature of these tariffs and their legal foundation are being tested in courts. Two lower courts already ruled that the president overstepped his authority in imposing these tariffs without explicit Congressional approval. However, tariffs remain active while the Supreme Court hears arguments, with justices expressing skepticism about the broad emergency powers claimed by the administration.
Costco highlighted the operational impact these tariffs have had, noting that roughly one-third of its U.S. sales are from imported products. While Costco absorbed some costs instead of raising prices on key items like fresh produce, tariffs still hit margins. The company’s lawsuit is proactive; it seeks to preserve the right to refunds before tariffs are fully liquidated by U.S. Customs and Border Protection, avoiding a scenario where payments are locked in and recoupment becomes impossible. This preemptive move follows concerns from a growing number of businesses caught in the uncertainty surrounding the executive orders.
Costco is among dozens of parties suing or preparing lawsuits to protect their refund rights. Other major companies include Revlon, Inc. (NYSE: REV), EssilorLuxottica S.A. (EPA: EL, MIL: EL), Kawasaki Heavy Industries, Ltd. (TSE: 7012), and Yokohama Rubber Co., Ltd. (TYO: 5101). These big importers are joined by a range of smaller businesses and even a coalition of about a dozen U.S. states that collectively argue the tariffs were improperly imposed without legislative backing. This widespread legal push reflects broader tensions between executive trade actions and Congressional authority over tariffs, with substantial financial burdens on the business community as the backdrop.
The outcome of these legal battles could redefine the limits of presidential power over trade and shape the future use of emergency laws in economic policy. Meanwhile, companies like Costco continue to adjust their supply chain strategies and legal tactics to manage the ongoing costs and uncertainties. The Trump administration’s tariffs, initially intended to serve national interests, have stirred a legal and commercial tug-of-war that will resonate across industries and trading relationships for years to come.
