Costco sues Trump administration over tariffs
Costco is suing the Trump administration to recover tariffs it paid on products imported from Mexico, Canada, and China, arguing that these tariffs were unlawfully imposed under President trump’s claimed emergency powers. The company is seeking a full refund with interest before any tariff rebate checks, promised by Trump to Americans, can be distributed.Costco had requested to be included in liquidated tariff dividends but was denied by Customs and Border Protection. The case is part of broader legal challenges against the Trump administration’s tariffs, which were justified by citing emergencies related to fentanyl and trade deficits. The Supreme Court is set to decide whether the International Emergency Economic Powers Act grants the president the authority to impose such tariffs,a matter traditionally controlled by Congress according to the Constitution. Costco, one of the world’s largest retailers with over 800 locations in eight countries, is among several companies, including Kawasaki Motors, Revlon, and Bumble Bee Foods, challenging these tariffs in court.
Costco seeks refund for tariffs in lawsuit against Trump administration
Retailer Costco is suing the Trump administration over tariffs, anticipating that the Supreme Court will rule against President Donald Trump’s emergency powers.
While Trump is promising $2,000 tariff dividend checks to Americans, Costco is seeking a full refund of the tariffs it has paid to the Trump administration for its foreign products, with interest, before these checks can be distributed. Earlier this month, Costco reported that it asked Customs and Border Protection to include the retailer in liquidated tariff dividends, but the request was denied.
Costco cited tariffs against Mexico, Canada, and China as the reason it paid increased tariffs since Trump signed the executive orders. According to the retailer, these were “unlawfully collected tariffs.”
The Trump administration is also facing lawsuits from Kawasaki Motors, Revlon, and Bumble Bee Foods, among others, over the tariffs. Meanwhile, Solicitor General D. John Sauer has presented an argument before the Supreme Court in defense of the tariffs.
Trump cited emergencies involving fentanyl and trade deficits to justify imposing tariffs under the International Emergency Economic Powers Act. The key question for the Supreme Court is whether the law grants the president authority to impose tariffs.
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Traditionally, Congress has controlled tariffs. Article I, Section 8 of the Constitution states, “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, … but all Duties, Imposts and Excises shall be uniform throughout the United States.”
Costco is among the largest retailers in the world with over 800 locations in eight countries.
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