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International Business Times
International Business Times
Business

Costco Challenges Legality of Trump's Tariffs, Seeks Refunds for Paid Duties

In an aerial view, the Costco logo is displayed on the exterior of a Costco store on July 11, 2024 in Richmond, California.

Costco Wholesale Corporation has filed a lawsuit against the federal government to block President Donald Trump's emergency tariffs and recover duties it says it was wrongly required to pay on imported goods.

The case, filed in the US Court of International Trade on Nov. 28, argues that Trump overstepped his authority by using emergency powers to impose tariffs on products from China, Mexico, Canada, and other countries.

Costco says it has already paid these tariffs and faces an approaching deadline that could prevent the company from reclaiming the money.

According to the NY Post, the government plans to finalize—or "liquidate"—its import entries on or after Dec. 15. Once entries are liquidated, importers may lose the right to challenge or recover the duties.

The warehouse giant is asking the court to declare the tariffs invalid, stop Customs and Border Protection from applying them to future shipments, and order a refund for all previously paid duties.

Costco's lawsuit follows earlier legal wins for other companies, including V.O.S. Selections, Inc., which challenged similar tariffs.

Companies Race to File Tariff Refund

President Trump used the International Emergency Economic Powers Act to justify the tariffs, but the Court of International Trade and the Federal Circuit have previously ruled that the law does not authorize such actions.

Costco argues that these prior rulings do not automatically guarantee refunds for individual companies, which must file their own lawsuits before liquidation deadlines.

Costco's case is part of a growing wave of legal challenges from importers, including companies in apparel, automotive parts, and consumer goods sectors, all claiming that the tariffs caused sudden cost increases and supply chain disruptions.

Other notable companies pursuing similar claims include Bumble Bee Foods, EssilorLuxottica, Kawasaki Motors, Revlon, and Yokohama Tire, USA Today reported.

The Supreme Court recently heard arguments on the broader legality of Trump's tariffs, with a decision expected soon.

Legal experts have noted that justices showed skepticism over whether the president had the authority to impose sweeping tariffs, raising concerns that such a ruling could shift power over trade from Congress to the executive branch.

"If I had to guess, I'd guess that the court will rule against the president without agreeing on the reason," said Oliver Dunford, attorney with the libertarian Pacific Legal Foundation.

Meanwhile, former Justice Department attorney Ashley Akers called the case "razor-close" based on the justices' questions during oral arguments.

Originally published on vcpost.com

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