Costco Wholesale has taken the Trump administration to court, filing a high-stakes lawsuit that challenges the legality of billions of dollars in tariffs imposed under Donald Trump’s presidency.
The retail giant is asking the U.S. Court of International Trade for a full refund of the duties it paid under the International Emergency Economic Powers Act (IEEPA) — the same law Trump used to justify sweeping “reciprocal” tariffs on imports.
In a filing submitted last Friday November 28, 2025, Costco argued that the former president overstepped the limits of the statute, asserting that the IEEPA does not authorize the president to unilaterally impose tariffs.
“Because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand,” Costco’s attorney wrote.
Supreme Court Already Considering the Tariff Power Question
The lawsuit lands at a critical moment. The U.S. Supreme Court is already reviewing Trump’s tariff authority, and during November’s oral arguments, justices from across the ideological spectrum pressed the government to defend what has long been viewed as an unprecedented use of emergency powers.
Trump is the first president in U.S. history to use IEEPA as the legal basis for import duties — a move lower courts previously questioned but allowed to remain in effect while the case advanced. The broader impact has been enormous: importers have paid nearly $90 billion under IEEPA-related tariffs, government data shows. Across all tariff actions, collections have reached $205 billion through October.
Costco: Tariffs Hurt Business, But Prices Stayed Flat for Shoppers
Costco did not disclose how much the tariffs cost the company, but its financial statements offer clues to the burden it carried.
About one-third of the retailer’s U.S. sales depend on imported goods, and imports from China alone account for roughly 8% of U.S. revenue, Chief Financial Officer Gary Millerchip told investors.
Some of the hardest-hit categories included fresh produce from Latin America — such as pineapples and bananas — where tariff spikes directly increased Costco’s costs. Yet the retailer said it refused to raise prices, describing the items as “key staple goods” for its members.
Instead, the company has spent the past two years attempting to soften the blow by shifting production to new countries and consolidating global purchasing to cut costs.
A Growing Corporate Revolt
Costco is not alone. The lawsuit adds the retail heavyweight to a growing list of multinational companies seeking refunds from the government — including Revlon, EssilorLuxottica, Kawasaki, Bumble Bee Foods, Yokohama Tire and dozens of smaller importers.
Each argues that if the Supreme Court rules that Trump had no legal basis to impose IEEPA tariffs, the government must return the money it collected.
The White House pushed back sharply.
“The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous,” spokesperson Kush Desai said Tuesday, signaling confidence that the administration will prevail before the Supreme Court.
Why It Matters
The stakes extend far beyond Costco’s balance sheet. A ruling against the government could trigger a flood of refund claims and effectively dismantle a key pillar of Trump’s economic agenda — an agenda that reshaped global supply chains, raised prices, and strained relations with major trading partners.
For now, Costco’s suit amplifies a key question facing the Supreme Court — and the U.S. trade system: Can a president unilaterally weaponize emergency powers to reset the rules of global commerce?
Businesses that absorbed billions in new costs are hoping the answer becomes clearer soon.
