Costco sues Trump administration over tariffs

Published: Tuesday, December 2, 2025 at 1:06 am

Costco Joins Growing List of Businesses Suing Over Trump-Era Tariffs

Costco Wholesale Corp. has filed a lawsuit against the Trump administration, joining a wave of businesses seeking potential refunds if the Supreme Court strikes down the President's tariffs. The warehouse club chain is one of the largest corporations to challenge the tariffs, which were imposed under an economic emergency powers law.

The Supreme Court heard arguments on the tariffs on November 5th, and is expected to issue a ruling. Businesses are filing lawsuits to ensure they are eligible for refunds if the court rules against the tariffs. Costco's lawsuit, filed in the U.S. Court of International Trade, cites uncertainty regarding refund guarantees for businesses that have paid duties.

Costco's legal action was prompted by Customs and Border Protection's denial of its request to extend the schedule for finalizing tariff determinations. The company argues this could jeopardize its ability to seek full refunds in the future. The lawsuit does not specify the financial impact of the tariffs on Costco.

The White House has stated that the economic consequences of not upholding the tariffs are significant. The administration anticipates a speedy resolution from the Supreme Court.

During Supreme Court arguments, some justices expressed skepticism about the tariffs, which have generated billions of dollars. Lower courts have ruled against the administration in some cases, but the tariffs remain in effect pending the Supreme Court's decision.

Other companies, including Revlon and Kawasaki, have also filed lawsuits. The tariffs have disrupted the retail sector, potentially increasing prices and affecting consumer purchasing power. While the impact has been somewhat mitigated by exemptions and rate adjustments, some goods are more expensive than before.

Costco has taken steps to mitigate the tariffs' impact, including rerouting products, increasing inventory, and consolidating buying. The company has also adjusted pricing on certain items, such as maintaining prices on essential goods like bananas and pineapples while increasing prices on less essential items like flowers. Costco executives have acknowledged the challenges of predicting future price changes.

BNN's Perspective:

The legal challenges to the Trump-era tariffs highlight the complex economic consequences of trade policy. While the tariffs aimed to protect domestic industries, they have also created uncertainty and financial burdens for businesses. A balanced approach that considers both domestic interests and the potential impact on consumers is crucial for future trade policies.

Keywords: Costco, tariffs, Trump administration, lawsuit, Supreme Court, refunds, trade, economic emergency powers, Customs and Border Protection, retail, prices, consumer, trade policy

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