Donald Trump's Tariffs Face New Legal Challenge from...

By Gabe Whisnant

Breaking News Editor

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Costco has sued the U.S. government in an effort to secure potential refunds should the Supreme Court reject President Donald Trump’s bid for broad authority to impose tariffs. In a complaint filed Friday in the U.S. Court of International Trade in Manhattan, the retailer said Trump’s use of the International Emergency Economic Powers Act to levy tariffs has created uncertainty over whether companies can reclaim duties they should not have been required to pay.

Costco, the country’s largest warehouse club operator, said U.S. Customs and Border Protection denied its request for more time to finalize tariff calculations, a decision the company argues could jeopardize its ability to obtain full refunds even if the Supreme Court rules against the administration.

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The Issaquah, Washington-based company is among dozens suing to preserve their right to repayment, and one of the largest, reporting $275.2 billion in revenue in the fiscal year that ended Aug. 31. Other companies seeking to safeguard potential refunds include Bumble Bee Foods, Ray-Ban maker EssilorLuxottica, Kawasaki Motors, Revlon and Yokohama Tire, according to court filings.

During oral arguments on Nov. 5, justices from across the ideological spectrum raised doubts about whether Trump had legal authority under the 1977 emergency powers law to impose sweeping tariffs. The court agreed to take the case on an expedited basis but has not indicated when a ruling will come.

Costco said it has tried to limit the impact of tariffs by reducing suppliers, increasing local sourcing and relying more heavily on its in-house Kirkland Signature brand.

This is a breaking news story. Updates to follow.

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