Costco Sues Trump Administration, Demands Billions

A Costco store in South Windsor, Connecticut, 2021. Photo courtesy of Jacob Blanck under CC BY-SA 4.0.

If you’ve shopped at Costco recently, you might have noticed prices inching upward. Now, the wholesale giant is taking a bold step to push back - by suing the Trump administration. On November 28, 2025, Costco reportedly filed a lawsuit in the U.S. Court of International Trade seeking a full refund of import duties it paid under tariffs imposed during Donald Trump’s second term. The retailer argues these sweeping tariffs, justified under the International Emergency Economic Powers Act (IEEPA), are unlawful because only Congress - not the president - has the authority to impose such levies. This legal move signals mounting resistance from major U.S. companies against what they view as executive overreach, and it could lead to a dramatic government payout if courts rule in their favor.

The Legal Battle Over Tariffs

At the heart of Costco’s lawsuit is the claim that President Trump’s tariffs, enacted shortly after returning to office in February 2025, exceed presidential authority. Trump used the IEEPA, a 1977 law designed to give presidents power to regulate international commerce during unusual and extraordinary threats, to justify tariffs on a wide range of imported goods from many countries. This was unprecedented - no president before Trump had used the IEEPA to impose import duties on such a scale.

Costco’s filing reportedly references a prior court ruling in the case V.O.S. Selections, Inc. v. Trump, where the court determined that tariffs imposed under the IEEPA were unauthorized. Despite this, the tariffs have remained in place while the legal process continues. Costco argues that even if the Supreme Court eventually strikes down the tariffs, importers like itself are not guaranteed refunds without their own lawsuits and judicial relief. That’s why Costco is taking its own stand, seeking a court order declaring the tariffs unlawful and demanding a refund for all duties paid.

A Growing Wave of Lawsuits

Costco is far from alone in this fight. Dozens of other companies have filed similar lawsuits challenging the legality of Trump’s tariffs. Names like Revlon, Kawasaki Motors, Bumble Bee, and EssilorLuxottica have all reportedly joined the fray, contesting the administration’s use of the IEEPA to impose tariffs. Many of these cases have been consolidated or are awaiting decisions at the Supreme Court level.

The stakes are enormous. If the Supreme Court rules against the administration, more than $90 billion in refunds could be owed to importers across the country. That’s a staggering sum with significant economic implications. Meanwhile, Costco is also seeking an immediate injunction to prevent having to pay additional tariffs on products already imported while the case is pending.

Why This Matters to You

You might wonder why a lawsuit between a giant retailer and the government matters to your everyday life. The answer lies in how tariffs affect prices on everything from groceries to cars. Trump’s tariffs have been controversial because they have driven up costs for consumers. Holiday decorations, wedding expenses, alcohol, and even everyday groceries have become more expensive due to these levies.

Costco’s lawsuit highlights a broader concern about the balance of power in government. The U.S. Constitution grants Congress the authority to impose tariffs, not the president. By challenging the tariffs, Costco and other companies are pushing back against what they see as an overreach of executive power. This legal battle could set important precedents about how far a president can go in regulating trade without congressional approval.

The White House Response

The White House has defended the tariffs, emphasizing their economic importance. White House spokesperson Kush Desai wrote, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact. The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter,” as reported by PEOPLE.

What’s Next?

As the legal battle unfolds, the outcome could reshape U.S. trade policy and impact how future presidents approach tariffs. For Costco and other importers, a favorable ruling could mean significant refunds and relief from ongoing tariff costs. For consumers, it could translate into lower prices on imported goods.

In the meantime, the case serves as a reminder of the complex interplay between law, politics, and economics. It also shows how companies like Costco are willing to take on the government to protect their interests and, by extension, those of their customers.

So next time you’re browsing the aisles at Costco, remember - behind those bulk deals is a high-stakes legal fight that could affect what you pay at the checkout.

References: Costco Sues Trump Administration Over Tariffs, Seeks ‘Full Refund’ of Duties Collected | Costco seeks ‘full refund’ for tariffs in new lawsuit against Trump administration - ABC News