Costco Wholesale has launched a fresh challenge to the Trump administration’s use of emergency powers, filing suit to recover millions in tariffs paid under the International Emergency Economic Powers Act. The case, now before the U.S. Court of International Trade, argues that every tariff imposed through the IEEPA was unlawful and should be refunded.
Costco’s complaint targets the same legal issue now moving through the federal courts: whether a president can rely on the 1977 IEEPA statute to impose sweeping economic measures that normally belong to Congress.
Key points from the filing:
- The company wants a full refund of the duties it paid on imports from China, Canada, Mexico, and other countries.
- The suit covers tariffs paid since February 2025, part of the roughly $90 billion in tariffs collected nationwide under Trump’s “global” tariff program.
- Costco argues that even if courts strike down the tariffs, companies will not automatically get their money back. Importers must file their own lawsuits before their shipments reach “liquidation,” the point when duties become final.
Customs authorities have denied Costco’s request to delay liquidation, which is set to begin Dec. 15. Once liquidation is finalized, duty payments become permanent, making timely judicial relief essential.
A Growing Line of Legal Challenges
Costco’s action mirrors similar challenges filed by companies like Revlon and Kawasaki. Lower courts, including the Court of International Trade and the Federal Circuit, have already ruled that tariffs imposed through the IEEPA are unconstitutional because Congress holds tariff-making authority.
The Supreme Court heard arguments earlier this month. Justices from both wings signaled skepticism about stretching emergency powers law into broad trade policy. A decision is expected in the coming weeks or months.
If the Supreme Court overturns the tariffs, the ruling could spark a wave of refund demands across import-heavy industries. For large retailers, the numbers could reach into the tens or even hundreds of billions of dollars.
Why Trump’s Use of IEEPA Is Under Scrutiny
The IEEPA allows a president to declare a national emergency in response to an “unusual and extraordinary threat” originating abroad. Traditionally, that authority has covered sanctions, asset freezes, and targeted financial restrictions.
Trump’s 2025 tariff program pushed the boundaries of that law by applying it to global trade. That approach has drawn questions across the spectrum.
Critics argue the administration used emergency powers to pursue policy goals unrelated to immediate threats. Supporters counter that modern economic and cyber risks from adversaries like China and Russia demand a stronger executive hand.
The central dispute is whether trade imbalances or technology vulnerabilities rise to the level of an “unusual and extraordinary threat” required by the statute.
Civil liberties groups warn that, without clear limits, emergency powers could become a catch-all tool for domestic policy. Trump’s allies say the law is flexible by design and reflects the realities of twenty-first-century national security.
What Happens Next
Several developments to watch:
- Supreme Court ruling on whether IEEPA can be used to impose tariffs. That decision will shape Costco’s case and every similar claim in the pipeline.
- More importers joining the fight as liquidation deadlines approach. Companies that fail to file in time could lose access to refunds even if the tariffs are voided.
- Possible congressional action if courts rule against the administration. Lawmakers may step in to address retroactive relief or update tariff statutes.
Costco’s lawsuit underscores the stakes for retailers and the limits of presidential power. If the judiciary curbs the administration’s use of emergency authority, it will mark a significant shift in how trade policy is set and who gets the final word.
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Costco you better think long and hard going against polices that improving this country. Memberships are on the line
Costco has the power to save that money Instead of buying from foreign companies that are located in countries that don’t want to practice fair trade with the USA they can buy from American Companies or companies in country’s that practice fair business trade with the USA. It appears Costco likes being protected by the USA they just don’t like paying their fair share of the costs of that protection. Costco is just plain greedy. There for people in the USA should not be forced to patronize places that buy from Costco.