Costco is suing the Trump administration, seeking a full refund of import taxes it paid under President Trump's executive orders earlier this year.
The discount retailer, a major importer, wants the U.S. government to stop imposing tariffs on goods Costco imports into the country until the Supreme Court evaluates the legality of the president's orders.
According to lawsuit Filed Friday in the U.S. Court of International Trade, Costco wants the court to declare that the president does not have the authority under the International Emergency Economic Powers Act to impose tariffs and challenge the tariff orders as illegal.
Tariffs are taxes levied on imported goods. Traditionally, tariffs are imposed after receiving congressional approval, but Trump invoked the 1977 law in February.national emergencyThe law used for sanctions allows global tariff orders to be issued, bypassing the traditional process.
The Supreme Court is now reviewing the legality of the tariff regulations.
“Whether Costco will be able to get reimbursed for the tariffs it has already paid on its imports really depends on the Supreme Court ruling on whether the president has the legal authority to impose tariffs,” said Devashish Mitra, a professor of economics and global affairs at Syracuse University.
Costco is the latest in a growing list of companies, including motorcycle maker Kawasaki, cosmetics maker Revlon and others, that are suing the Trump administration for damages if the Supreme Court overturns Trump's economic policies.
While there may be compelling national security reasons why the president has the authority to impose tariffs, tariffs on imports such as shirts or sheets are inappropriate and illegal, critics say.
“Imposing a single tariff on all imports from a country or several countries with one stroke of the presidential pen will be very difficult, if not impossible, if other bases for tariffs are involved,” Mitra said.
ABOUT a third of Costco's US sales come from imported goods, with China, Canada and Mexico being the main sources.
In its lawsuit, Costco emphasized that most imports from China are subject to tariffs of at least 145%, which has affected its orders.
Trump boasted that tariffs helped reduce the trade deficit, and since October $205 billion federal government revenues in 2025.
These policies destroyed the retail sector and threw every industry, from retailers to toy manufacturers, into chaos.
Some have tried to restructure supply chains to source products domestically or from countries not subject to tariffs to keep costs low, while others are forced to offer products at lower prices so customers can afford them.
Companies pass on costs to consumers. Some are absorbing some of the additional costs and reducing their profits to avoid increasing retail prices too much.
Prices began rising immediately after broader tariff measures were announced in early March. continued to gradually increase Imported goods grew at about twice the rate of domestic goods in subsequent months, according to the National Bureau of Economic Research.
“We're going to do everything we can to mitigate the impact of the tariffs,” Ron Vachris, Costco's CEO, said in a September earnings release. “The final effect will be that we will lower the price. If we do this, we will be the last to go up, and always [be] the first to miss any opportunity we have.”
