Costco Sues Trump Admin for Every Dollar of Tariff Refund

Even a Supreme Court Win Might Not Get Refunds

Costco filed a federal lawsuit on November 28 asking for every dollar back that it paid in tariffs this year.

The reason for the rush is a December 15 deadline that could make those payments permanent, even if the Supreme Court eventually rules the tariffs were illegal all along.

Once that date hits, the government finalizes the tariff calculations on Costco’s imports, and getting a refund becomes nearly impossible. One of Costco’s shipments already crossed that line.

The company asked Customs to delay the deadline. Customs said no on November 18, so Costco went straight to court.

Liquidation Turns Estimates Into Final Bills

When you import something, you pay an estimated tariff up front. The government has up to a year to finalize that number through a process called liquidation.

Once liquidation happens, the amount you paid becomes official. If you overpaid, you can file a protest within six months.

But if the tariff itself was illegal, that protest process might not help you.

Federal trade courts have warned that companies may lose the legal right to recover duties after liquidation, even when a tariff gets struck down later.

Costco’s lawsuit says this is why the company can’t just wait for the Supreme Court.

Customs Denied the Extension Request

Costco asked U.S. Customs and Border Protection to push back the December 15 liquidation date. The agency denied that request on November 18.

Costco says in its filing that without an extension, it faces immediate and irreparable harm.

The company is asking the Court of International Trade to block Customs from finalizing any more of its tariff calculations until the Supreme Court rules.

Costco also wants a declaration that the tariffs are illegal and a full refund on everything it has paid so far. The lawsuit doesn’t say how much money that adds up to.

One Costco Shipment Already Past the Point

At least one of Costco’s import entries has already liquidated.

That means the tariff on that shipment is now locked in, and the company may have lost its chance to get that money back. Costco says more entries are approaching the cutoff.

The lawsuit describes a situation where the company is racing against a calendar it can’t control.

Every shipment that crosses the December 15 line could become a permanent loss, no matter what the Supreme Court decides. This is what forced Costco to file now instead of waiting for the justices to rule.

Supreme Court Ruling Won’t Automatically Trigger Refunds

Even if the Supreme Court strikes down Trump’s tariffs, that decision alone won’t send refund checks to every company that paid them. Costco’s lawsuit makes this point directly.

The company says importers need their own judgment and judicial relief to guarantee a refund. Two lower courts already ruled the tariffs illegal, but those rulings didn’t stop the government from collecting.

They also didn’t promise automatic refunds.

Costco argues that without filing its own case, the company could win the legal argument about tariffs being unlawful and still lose all the money it paid.

Federal Courts Warned This Could Happen

The Court of International Trade and the Federal Circuit have both cautioned that importers may lack the legal right to recover refunds after their entries liquidate.

This warning applies even when the underlying tariff is later found to be unlawful. Costco quotes these warnings in its lawsuit.

The company says this is exactly the trap it’s trying to avoid.

If December 15 passes and the entries finalize, Costco might not be able to challenge those specific payments anymore, no matter how the Supreme Court rules on the bigger question about presidential authority.

About One Third of Costco Sales Are Imports

Costco’s chief financial officer said in May that about one third of the company’s U.S. sales are imported products. Items from China represent about 8% of total U.S. sales.

That means tariffs hit a significant chunk of what Costco sells.

The company has tried to limit the damage by reducing suppliers, shifting production, and relying more on its Kirkland Signature brand.

Costco also absorbed some tariff costs instead of raising prices on staples like bananas and pineapples.

But the lawsuit shows the company isn’t willing to write off what it has already paid if there’s a legal path to get it back.

Dozens of Other Companies Filed the Same Lawsuit

Costco is one of the biggest names to sue, but it’s far from alone.

Revlon, EssilorLuxottica, Kawasaki Motors, Bumble Bee Foods, and Yokohama Tire have all filed similar lawsuits since late October. These companies are making the same argument.

They can’t wait for the Supreme Court because the liquidation deadline will kill their chance at a refund.

The wave of lawsuits started accelerating in the fall as companies realized a favorable Supreme Court ruling might not be enough to get their money back. Each company needs its own case to protect its own refund.

Government Collected $205 Billion Through October

Through the end of October, the government had collected $205 billion in tariffs. That number is up about 300% from the same period in 2024.

Trump’s tariffs are bringing in massive revenue for the Treasury.

If the Supreme Court strikes them down and companies like Costco start winning refund lawsuits, the government could be on the hook for tens of billions of dollars in payouts. This is part of why the stakes are so high.

The lawsuits aren’t just about whether Trump had the authority to impose tariffs. They’re about whether the money has to go back.

Supreme Court Heard Arguments on November 5

The Supreme Court heard arguments about Trump’s tariffs on November 5.

Chief Justice John Roberts and several conservative justices asked tough questions about whether the president can impose taxes without Congress.

Roberts said the power to reach into the pockets of the American people has always been the core power of Congress.

Justice Neil Gorsuch asked if there would be any limit to presidential authority under the government’s theory. Justice Amy Coney Barrett asked how refunds would work if the challengers win.

The justices put the case on a fast track, but they haven’t said when they’ll rule.

White House Defends the Tariffs as Lawful

White House spokesperson Kush Desai said the economic consequences of failing to uphold Trump’s tariffs are enormous and that Costco’s lawsuit highlights that fact.

The statement said the White House looks forward to the Supreme Court’s speedy resolution of the matter.

The administration argues the tariffs are legal under the International Emergency Economic Powers Act, which gives the president authority to regulate imports during emergencies.

Trump declared emergencies over trade deficits, illegal immigration, and drug trafficking to justify the tariffs. Lower courts disagreed and said the law doesn’t authorize the president to impose tariffs.

Billions Could Flow Back or Disappear Forever

If the Supreme Court rules against Trump and companies like Costco win their refund lawsuits, the Treasury could face a payout in the tens of billions.

If the Court rules for Trump, the tariffs stand and the government keeps the money. But there’s a third possibility that Costco is trying to avoid.

The Court could strike down the tariffs, but companies that didn’t file their own lawsuits before liquidation might lose their shot at refunds anyway.

That’s the scenario driving dozens of companies into court right now. They’re not waiting to see if they win the big case.

They’re making sure that if they do, the win actually pays off.

This article was created with AI assistance and human editing.

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