Costco sues Trump administration over $90B tariff dispute and refund risks
Costco has initiated legal action against the Trump administration over tariffs on imported goods. The retail giant is demanding refunds for online payments made under the controversial trade policy. At stake is whether President Donald Trump had the authority to impose these tariffs using emergency powers.
The case also highlights concerns about market instability and the financial risks for small business ideas if the tariffs are later deemed unlawful.
The dispute centres on tariffs introduced under the International Emergency Economic Powers Act. Costco argues that the administration rushed the measures, causing disruption in global trade. According to US Customs and Border Protection, these tariffs have cost American importers up to $90 billion by late September.
Costco has repeatedly tried to finalise its tariff payments with CBP but faced repeated rejections. The company’s lawsuit warns that, even if the Supreme Court later rules against the tariffs, importers may not receive refunds. This could leave businesses with unrecoverable losses.
Unlike other major firms such as Amazon, which chose to wait before challenging the policy, Costco took early action. The move risks straining relations with the White House, as seen in past conflicts with companies taking similar stands. Legal experts suggest that if Costco succeeds, more businesses may follow with their own refund claims.
A ruling against the administration could still leave importers facing a complicated refund process. The lawsuit underscores the uncertainty around whether companies will recover payments if the tariffs are struck down.
The outcome of Costco’s case could set a precedent for other importers seeking tariff refunds. If the Supreme Court rules against the Trump administration, businesses may still struggle to reclaim payments. The case also raises broader questions about the use of emergency powers in trade policy and the financial impact on US companies.
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