Costco sues over Trump tariffs, asks Court of International Trade to block emergency tariff orders
Costco Wholesale Corporation filed a federal suit in the Court of International Trade, arguing that former President Trump’s emergency import tariff orders exceed statutory authority and seeking refunds for millions in duties as a Dec. 15 liquidation deadline approaches.
Key takeaways
- Who: Costco Wholesale Corporation, a major U.S. retailer.
- What: Federal lawsuit asking the Court of International Trade to declare emergency tariff orders invalid and to stop Customs from applying them.
- Why: Costco says the emergency-powers statute does not authorize tariffs and it seeks recovery of duties it believes were unlawfully collected.
- Deadline risk: Customs begins liquidating entries on or after Dec. 15, which can lock in duties and limit recovery options.
- Source
Why Costco sued
Costco says it paid duties under the administration’s emergency tariff program throughout 2025 and now seeks to recover those payments. The company filed quickly after one of its import entries was finalized and others neared the Dec. 15 cutoff that could make refunds harder or impossible. Source
Legal backdrop and Costco’s arguments
In its complaint, Costco contends the statute cited by the administration for the tariffs does not permit the president to impose or raise tariffs. The company asks the Court of International Trade for declaratory and injunctive relief to (1) declare the tariff orders invalid, (2) stop U.S. Customs and Border Protection from applying the tariffs to Costco’s shipments, and (3) permit recovery of duties it says were unlawfully collected. Source
Prior rulings and the Supreme Court context
Costco’s claims mirror earlier rulings by the Court of International Trade and the Federal Circuit, which found that the emergency-powers statute at issue does not authorize tariffs. The matter reached the Supreme Court, which heard arguments in November 2025; that high-court decision is expected to shape the pace and outcome of related cases. A decision could determine whether other importers can challenge and recover duties. Source
Who else is challenging the tariffs
Costco is among a growing set of importers and distributors filing suits. Plaintiffs include small specialty importers, larger retailers, and companies such as Learning Resources, Inc., and V.O.S. Selections, Inc., a wine and spirits importer that has won significant rulings so far. Apparel makers, auto parts suppliers and consumer-goods distributors say the tariffs caused sudden cost increases and disrupted supply chains. Source
Why Dec. 15 matters
Customs “liquidation” finalizes duty amounts on imported shipments. Once an entry is liquidated, the duty is fixed and importers generally lose the administrative avenue to contest or recover duties. Because Customs begins liquidating entries on or after Dec. 15, companies with shipments subject to the tariffs must act quickly to preserve rights to challenge payments — which is why Costco sought immediate relief. Source
Possible outcomes and risks
If the Court of International Trade rules for Costco, the company could stop Customs from applying the tariffs to pending shipments and may obtain refunds for duties already paid. If the court upholds the tariff orders, Costco could be required to keep the assessed duties and Dec. 15 liquidations would likely stand. The Supreme Court’s broader ruling will be pivotal: if it finds the emergency-powers law does not authorize tariffs, many importers may press for refunds — but recovery after liquidation can be difficult without timely legal or administrative action. Source
Investigative questions and public-interest issues
- Executive power vs. statutory limits: Does a president have authority to deploy emergency powers to impose broad tariffs without clear congressional authorization?
- Consumer prices and competition: Tariffs can raise retail prices and reshape supply chains — will unlawful tariffs ultimately lead to refunds that reach consumers?
- Administrative deadlines and access to courts: The Dec. 15 liquidation deadline shows how timing can block relief even if courts later find agency actions unlawful.
- Equal treatment among importers: The outcome could affect hundreds of companies that paid duties under the program and are racing to preserve refund rights.
Statements and next steps
Costco’s filing seeks declaratory and injunctive relief and recovery of allegedly unlawful duties. The company moved quickly after learning of liquidations affecting its entries and other entries approaching the Dec. 15 cutoff. The Department of Justice and U.S. Customs and Border Protection are expected to defend the tariff and customs decisions; the Supreme Court’s related ruling will likely shape how Costco’s case proceeds. Source
Implications for Utah
Economic impact: Utah retailers and consumers could feel secondary effects if tariffs raise costs on goods sold by large chains like Costco. Higher import duties often translate into higher retail prices; Utah families that shop at Costco for groceries, household goods and electronics could face higher bills if tariffs remain and are not refunded. The question of whether refunds reach consumers — or only benefit corporate balance sheets — matters for local shoppers. Source
Supply chains and local businesses
Many Utah businesses depend on national retailers or imports of parts and finished goods. If tariffs increase costs for distributors and retailers, Utah small businesses that rely on those suppliers may see tighter margins and higher input prices. Companies in Utah’s manufacturing, outdoor recreation, and tech supply chains could be indirectly affected by cost shifts and supply disruptions tied to the emergency tariff program. Source
Political consequences
For a conservative audience in Utah, the case frames issues of fiscal responsibility and limits on executive power. If courts find the tariffs unlawful, it would emphasize the need for clear congressional authority before major trade actions. Utah lawmakers who favor predictable rules for business may view the filing as defending statutory limits and protecting commerce from sudden policy shifts. Source
Social and consumer effects
Utah households on tight budgets could be affected if retail prices rise. Costco’s effort to recover duties will be watched by consumers who expect big-box chains to fight for fair prices and transparency. The case spotlights broader concerns about how government actions ripple to everyday grocery and household costs. Source
Practical considerations for Utah residents
- Shoppers: Watch for price changes and retailer notices about refunds or credits.
- Local businesses: Review customs entries and timelines; the Dec. 15 liquidation deadline may affect the ability to challenge duty assessments.
- Legal and civic interest: The case matters to Utah’s legal and business communities, touching on separation of powers and administrative deadlines.
Follow-up and ongoing coverage
Readers can follow filings in the Court of International Trade and the related Supreme Court matter, and check updates from Costco and federal agencies as the Dec. 15 liquidation timeline approaches. Official filings and agency responses will provide the clearest updates on relief, liquidations, and potential refunds. Source
“The litigation centers on whether emergency statutory authority can be used to impose broad new tariffs — and whether importers can recover duties paid under that program.”
