Costco Wholesale Corporation filed a lawsuit against the U.S. government on 28 November 2025 to contest sweeping import tariffs imposed under the second Trump administration. The big-box retailer seeks legal clarity regarding the authority under which tariffs were levied and requests a full refund of duties already paid by the retailer.
Tariff Issues: Understanding Why Costco Filed a Lawsuit Against the U.S. Customs and Border Protection of the Second Trump Administration
A high-stakes Costco lawsuit targets emergency tariff orders implemented by the Trump administration. The company not only disputes the legality of the trade measures but also provides it with a proactive protective measure.
Background on the Lawsuit
The lawsuit was submitted to the United States Court of International Trade and names the U.S. Customs and Border Protection as the primary defendant. Costco specifically argues that the International Emergency Economic Powers Act, used as the legal basis of the Trump tariffs, does not provide legal authority for such wide-ranging trade measures.
Costco noted that about one-third of its sales come from imported goods. These include clothing, electronics, and household items. The company warned that tariffs imposed without proper statutory authority have substantial financial implications for large retailers and could indirectly affect prices paid by millions of U.S. consumers.
The company said that previous court rulings questioned the constitutionality of emergency tariff actions. Smaller companies previously challenged similar measures and obtained partial favorable decisions. Costco, however, filed its lawsuit to ensure the ability to recover funds and to protect its rights before customs liquidation deadlines are reached.
Customs liquidation rules finalize duties for imports after a defined period, typically several months, which prevents importers from filing future claims for refunds. Liquidation is the final and official administrative action taken by the customs authority to determine the final amount of duties, taxes, and fees owed on an imported good.
Note that Costco formally requested extensions from U.S. Customs and Border Protection for all of its entries related to the disputed tariffs to preserve its rights. The goal was to pause the clock until the Supreme Court issued its ruling. Hence, if the Supreme Court struck down the tariffs, it could then use the ruling to claim a full refund on all the duty payments.
Specific Purpose of the Lawsuit
The U.S. Customs and Border Protection denied the request. However, while this denial itself is discretionary, it immediately placed Costco at risk of losing billions of dollars in potential refunds. Costco had no choice but to take immediate legal action by filing a separate lawsuit against the U.S. government in the U.S. Court of International Trade.
It is also worth mentioning that Costco is seeking three specific legal remedies in its lawsuit against the customs authority. These include declaring that the emergency tariffs are unlawful, blocking future tariff collection under the challenged executive orders, and a complete refund of all duties collected by the federal government under the challenged measures.
Hence, the lawsuit is a protective measure. It asks the court to step in and grant a judicial injunction that can force the customs authority to suspend or extend the liquidation of the specific entries. Thus, by getting a possible court order before the entries liquidate, Costco ensures that it is in line for a refund if the Supreme Court rules against the tariffs.
At least 20 other companies have also sued the second Trump administration over tariffs. These include canned-foods manufacturer Bumble Bee Foods, motorcycle company Kawasaki Motors, cosmetics and personal care giant Revlon, food producer and distributor Fresh Del Monte Produce, and subsidiaries under the Toyota Group. Costco is the largest plaintiff.
The legal battle regarding the tariffs under the second Trump administration has now escalated to the Supreme Court. The first oral arguments were held on 5 November 2025. The central legal issue is whether U.S. President Donald Trump has the statutory authority under the International Emergency Economic Powers Act to impose duties on imports.
FURTHER READINGS AND REFERENCES
- Costco Wholesale Corporation. 28 November 2025. Costco Wholesale Corporation v. U.S. Customs and Border Protection in the United States Court of International Trade. Available via PDF
- Fields, A. 3 December 2025. “These Companies Have Sued Trump For Tariff Refunds.” The Hill. Available online
- Tadesse, B. 3 November 2025. “Congress Has Been Dodging Responsibility for Tariffs for Decades—Now the Supreme Court Will Decide How Far Presidents Can Go Alone.” The Conversation. Available online