Costco has joined other companies in seeking refunds for tariffs paid under former President Donald Trump’s import tax policy, even as the Supreme Court reviews the legality of those tariffs. The company recently filed a complaint with the U.S. Court of International Trade in New York, aiming to secure a refund if the court rules against the tariffs.
Earlier this year, both the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit determined that Trump’s major import taxes were illegal. The case is now before the Supreme Court, where justices have questioned whether the president has broad authority to impose such tariffs by declaring national emergencies.
Brent Skorup, a legal fellow at the Cato Institute, commented on the uncertainty surrounding potential refunds: “It’s uncertain whether refunds will be granted and, if so, how much,” he said. “But the possibility has prompted many companies — including Costco — to file actions in the U.S. Court of International Trade to get in line, so to speak, for potential refunds.”
Trump has argued that he holds wide-ranging powers to impose tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), but courts have twice ruled against him on this issue.
Joyce Adetutu, a trade lawyer at Vinson & Elkins, explained Costco’s strategy: “Costco is trying to make sure that if and when the Supreme Court overturns the IEEPA tariffs, which could come as late as the summertime, they have the judgment in place and can collect a refund.”
In its complaint, Costco stated it is demanding repayment now “to ensure that its right to a complete refund is not jeopardized.” The company expressed concern about retrieving refunds after its tariff bills are finalized through a process known as liquidation by Customs and Border Protection (CBP), expected to begin December 15. Importers generally have 180 days after liquidation to challenge their tariff bills. Adetutu noted that Costco fears “their timeline might be whittled away depending on how long it takes to get a Supreme Court decision.”
Other companies such as Revlon and Bumble Bee Foods have also made similar requests for refunds in court.
The challenged tariffs have generated approximately $90 billion in revenue so far. According to Adetutu, while CBP processes tariff refunds regularly as bills are finalized or appealed, she noted: “This is a substantial amount of tariff income that has been collected. And really there hasn’t been a case where there’s been an influx of refund requests.”
