Costco Sues Trump Administration, Demands Refund On Tariffs
Costco Wholesale filed a lawsuit against President Donald Trump’s administration demanding a refund on tariffs it’s been forced to pay under his use of the International Emergency Economic Powers Act (IEEPA).The lawsuit, filed in the Court of International Trade, demands that Trump’s administration provide the company a “full refund” on import duties collected under the act, as well as an injunction on future tariffs and a declaration that they are illegal.The lawsuit, first reported on by NBC News, cites previous rulings by the international trade court and the Federal Circuit that the tariffs were unlawful and claims Trump is misusing the IEEPA, which is intended for use during an extraordinary threat that constitutes a national emergency.“The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning,” the lawsuit notes. “IEEPA was first enacted in 1977 and has been amended several times, but it has never been amended to authorize, or used by any other President to impose, tariffs.”Costco says its lawsuit, which comes as the Supreme Court weighs its own decision on the tariffs, is necessary even if the high court strikes down Trump’s import duties because companies “are not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief.”Costco does not state in its filing how much Trump’s tariffs have cost the company, but a Costco executive said on an earnings call in May that about one-third of the company’s sales in the U.S. are imported goods. The company did not immediately respond when asked for more information on the lawsuit or the amount it’s seeking.The White House also did not immediately respond to requests for comment on the lawsuit. As of the end of October, the Trump administration says it has collected $195 billion via tariffs ― about $100 billion less than the White House projected.Small Retailers Warn How Trump Tariffs Have Triggered Holiday Supply ChaosRepublicans Dump On Trump's Tariff Rebates: 'Crazy Idea'Supreme Court Skeptical Over Trump's Tariff PowerThe Supreme Court Might Be About To Give Trump Even More Power
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