Global retailer Costco Wholesale Corporation has initiated legal proceedings against the United States government, pressing for guaranteed full refunds on billions of dollars in import duties should the Supreme Court determine that the former presidential administration exceeded its authority in imposing global tariffs without explicit congressional approval. Filed during the Thanksgiving holiday period with the U.S. Court of International Trade (CIT), the lawsuit seeks judicial relief before a critical December 15, 2025, deadline, which Costco claims is necessary to safeguard its right to recoup potentially substantial payments collected under the International Emergency Economic Powers Act (IEEPA).
Why Costco Is Taking Action
Costco’s legal challenge hinges on the argument that the tariffs imposed using IEEPA caused demonstrable financial damage to its operations. The company’s counsel asserts that even if the Supreme Court rules the levies were unconstitutional or unlawful, a separate legal judgment is required to ensure the automatic reimbursement of duties paid. Without this distinct action, the retail giant fears it may lose the opportunity to recover funds, a potential scenario complicated by the impending deadline.
The core legal dispute centers on the scope of presidential authority under IEEPA to impose broad tariffs without direct authorization from Congress. Two lower courts have already concluded that the utilization of IEEPA in this context was an overreach of executive power. In May, the CIT first ruled the duties were unlawfully applied, a decision later affirmed by the U.S. Court of Appeals for the Federal Circuit. The matter has since advanced to the Supreme Court, where several justices expressed skepticism last month regarding the executive branch’s unilateral ability to implement such widespread economic measures.
Financial Stakes and Broader Implications
While Costco has not publicly disclosed the exact total amount it seeks to reclaim, the financial implications for the federal government and importers nationwide are immense. According to U.S. Customs data, businesses importing goods have collectively paid an estimated $90 billion in IEEPA-related tariffs as of late September. Many other companies are pursuing similar legal strategies to preserve their claims for reimbursement in anticipation of a favorable ruling from the high court.
The current administration staunchly defends the tariffs, arguing that emergency powers grant sufficient authority to act globally when deemed necessary. Government officials warn that an adverse Supreme Court decision could significantly curtail U.S. leverage in international trade negotiations and deprive the Treasury Department of billions of dollars already collected. A White House spokesperson underscored the considerable economic stakes to CNBC, urging the Supreme Court for a swift resolution.
Separately, the president recently claimed the U.S. was collecting “trillions of dollars” from tariffs and pledged to distribute a minimum dividend of $2,000 per person, excluding higher-income earners, to the American public. This assertion highlights the perceived benefits of the tariff revenue stream, which an invalidation by the Supreme Court would abruptly end.
The Supreme Court’s decision next year will not only determine whether the executive branch retains this powerful tariff-setting authority but also dictate whether the U.S. government must process massive refunds, fundamentally reshaping the financial landscape for major importers like Costco. Companies are now acting proactively to secure their financial positions, turning a key legal debate into a urgent race against the clock to lock in potential refunds.