Costco has now reportedly filed a federal lawsuit challenging President Donald Trump’s executive order authorizing so-called “reciprocal tariffs,” arguing the administration exceeded its authority under existing law and demanding a full refund of duties the company has paid. The case, brought in the U.S. Court of International Trade, names the United States, U.S. Customs and Border Protection (CBP), and CBP Commissioner Rodney S. Scott as defendants.
At the heart of the dispute is Trump’s April executive order invoking the International Emergency Economic Powers Act (IEEPA) to impose adjustable tariffs on imports. The order empowered the administration to pause, reinstate, or alter tariff levels — authority Costco says the law does not grant.
“Because IEEPA does not clearly authorize the President to set tariffs, the Challenged Tariff Orders cannot stand,” the company argues in its complaint. “The defendants are not authorized to implement and collect them.”
Costco is seeking a full refund of all tariffs paid under the contested order.
It is not the first major corporation to challenge the tariffs. Revlon, EssilorLuxottica, Kawasaki, Bumble Bee Foods, and Yokohama Tire have all filed similar lawsuits. Lower courts have consistently ruled against the administration’s interpretation of IEEPA but have allowed the tariffs to remain in effect while the litigation advances — a move that has forced businesses to continue paying duties they may later be entitled to recover.
During oral arguments last month, Supreme Court justices appointed by both Republican and Democratic presidents expressed skepticism about the administration’s legal justification for using IEEPA to set trade tariffs — a sign many legal observers interpreted as a forthcoming rebuke of the government’s position.
Bloomberg reported that Costco’s lawsuit was spurred by concerns that, even if the Supreme Court ultimately strikes down the tariffs, companies may not automatically receive refunds unless they have preserved their claims in court. Costco warned that CBP recently denied its request to extend the timetable for finalizing tariff assessments under Trump’s IEEPA order, which the company says could jeopardize its ability to recover millions in duties.
The retailer did not disclose the total amount it has paid, but as one of the nation’s largest warehouse chains and importers, Costco represents one of the biggest corporate challenges to the tariff regime to date.
The lawsuit adds to mounting pressure on the administration at a time when businesses across multiple industries are calling for relief from duties they argue were imposed unlawfully. With the Supreme Court expected to deliver a decision that could reshape presidential authority on trade, Costco is now seeking court intervention to ensure it is not left footing the bill if the tariffs collapse.
While Trump’s tariff strategy has drawn support from Americans concerned about unfair foreign trade practices, the legal question before the courts is whether any president — regardless of policy goals — can use emergency economic powers to unilaterally impose broad import taxes without congressional approval. The outcome could redefine executive authority over trade for years to come.
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