As the Supreme Court deliberates over the question of whether a broad set of tariffs imposed by President Trump on trading partners around the world is legal, retail giant Costco has sued the Trump administration to recover the tariffs it has paid.
The lawsuit filed Friday challenges Trump’s use of the International Emergency Economic Powers Act to authorize the new tariffs, which Trump has referred to as “reciprocal tariffs,” arguing that the 1977 law does not give the president the power to override Congress on tariff policy.
“The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning,” the lawsuit says. “Because IEEPA does not clearly authorize the President to set tariffs ... the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them.”
Costco said it is seeking a “full refund” of all import fees paid under IEEPA authority, though it did not cite a specific amount.
The U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit in Washington ruled earlier this year that Trump’s IEEPA tariffs are illegal. The IEEPA tariffs have generated roughly $90 billion in revenues overall so far this year, per the Associated Press. Numerous other companies, including Revlon, Ray-Ban and Bumble Bee Foods, have sued to recover the tariffs they have paid.
Trump has warned that if the Supreme Court rules against his tariffs and says he overstepped his authority in imposing them, it would threaten national security and could “literally destroy” the country.