Costco Files Lawsuit Against Trump Administration Over Controversial Tariffs, Seeks Billions in Potential Refunds

Costco has officially broken ranks with much of corporate America, filing a lawsuit against the Trump administration over sweeping tariffs imposed earlier this year — and demanding full refunds if the Supreme Court rules the measures unlawful.

The lawsuit, filed Friday with the U.S. Court of International Trade, argues that the administration exceeded its legal authority when it invoked the International Emergency Economic Powers Act (IEEPA) to justify sharp tariff increases. Under President Donald Trump, tariffs surged up to 50% on imports from countries such as India and Brazil — and as high as 145% on Chinese goods.

According to U.S. Customs and Border Protection, American importers have collectively paid more than $90 billion in tariffs under these policies.

Supreme Court Ruling Could Trigger Massive Financial Chaos

The Supreme Court heard arguments last month on whether Trump had the authority to impose these emergency tariffs. If the Court determines he overstepped, businesses nationwide could become eligible for refunds — a scenario Justice Amy Coney Barrett warned could be “a mess.”

Many companies have quietly sought extensions from CBP to prevent tariff payments from becoming “final,” a strategy meant to simplify the refund process later. But Costco’s lawsuit signals the retailer has little confidence in waiting for bureaucratic solutions.

Costco Claims It Risks Losing Refund Eligibility

Costco argues that without legal action, it might never receive reimbursement — even if the tariffs are struck down.

The company says CBP rejected multiple attempts to delay settlement of its payments, leaving Costco exposed to massive financial losses.

Adding to the tension, Trump has referred to the tariff case on Truth Social as “LIFE OR DEATH for our Country.” Experts warn the administration could attempt to block or slow refunds if politically advantageous.

Experts: High-Risk Move, But Potentially High Reward

Trade experts say Costco’s aggressive legal move could put a target on its back.

“They’re clearly not convinced the Supreme Court will address the refund chaos,”
— Marc Busch, Georgetown University trade law expert

The company did not disclose how much it paid in contested tariffs, but analysts estimate the total could reach hundreds of millions.

Corporate America Is Watching Closely

Other major retailers — including Amazon, Walmart, and Target — have avoided public challenges to Trump’s tariff agenda.
But remaining silent comes with risks: if companies do not preserve refund rights now, they may lose them forever.

“If the tariffs are ruled unlawful but Costco still can’t get its money back, the financial hit could be enormous,”
— Emil Stefanutti, CEO of Gaia Dynamics

As the Supreme Court prepares its ruling, Costco’s high-stakes lawsuit may be the first domino in a much larger corporate backlash.