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Tipsheet

Costco Sues to Reclaim Millions Paid Under Trump Tariffs

AP Photo/Gene J. Puskar, File

Costco filed suit against the Trump administration seeking to block the Liberation Day tariffs announced in April and to be refunded the payments it has already made. 

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The case was filed in the Court of International Trade on Friday and argues that the president misused the International Emergency Economic Powers Act (IEEPA) to impose tariffs on goods from over 100 different countries. “The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning,” Costco states in the lawsuit. They argue he can regulate trade, but that does not include the power to tariff. 

Costco is also seeking a refund for the tariffs it has paid since the beginning of the year. From Fox Business:

Costco says it has paid these duties throughout the year and now faces a deadline that could prevent it from getting that money back.

The company says the government will begin finalizing – or "liquidating" – its import entries on or after Dec. 15. Once an entry is liquidated, the duty amount becomes locked, and importers may lose the ability to challenge or recover those charges.

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Costco is asking the court to declare the tariff orders invalid, block Customs and Border Protection from applying the tariffs to its shipments going forward and require the government to refund all duties the company has already paid under the emergency tariff program.

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The sentiment of the lawsuit echoes that of numerous other lawsuits, mainly by small businesses against the White House.

Costco is the first of the large retailers to file a suit, and will determine whether other companies can secure refunds. 

Last month, the Supreme Court heard oral arguments on the use of tariffs under the IEEPA. The country is still waiting on a decision, which could arrive before the end of the year. 

Kush Desai, a spokesman for the White House, said in a statement that the “economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous, and this suit highlights that fact. The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”

Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.

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