Costco Seeks Court Order to Recover Trump-Era Tariffs and Halt Further Collections

Costco Wholesale Corp. has filed a lawsuit in the U.S. Court of International Trade aiming to reclaim import duties the company has already paid under tariffs imposed by former President Donald Trump and to prevent federal authorities from continuing to levy those charges while the policy’s legality is reviewed by the Supreme Court.

The complaint, submitted on Friday, requests a full refund of the tariffs the warehouse retailer has paid in 2025 and seeks an injunction against U.S. Customs and Border Protection (CBP) to stop additional assessments. The filing argues that, even if the Supreme Court ultimately agrees with lower court decisions that found Trump lacked authority to impose the duties, Costco could forfeit its right to reimbursement because a statutory cutoff date is rapidly approaching.

Deadline Could Block Refunds

Under U.S. customs law, import transactions are “liquidated” after a set period, meaning the final calculation of duties becomes conclusive. For many of Costco’s relevant imports, liquidation is scheduled for December 15. Once that date passes, prior payments generally cannot be refunded, even if the underlying tariff is later struck down. Costco said CBP rejected its request to delay liquidation, prompting the retailer to turn to the court for relief.

Dozens of other companies have filed similar actions in recent months, each seeking to protect their ability to reclaim duties if the Supreme Court finds that Trump overstepped his authority. The consolidated litigation underscores the high financial stakes involved: retailers, manufacturers and importers collectively face hundreds of millions of dollars in potential refunds.

Tariffs Issued Under IEEPA

Trump announced the contested duties earlier this year, citing emergency powers granted by the International Emergency Economic Powers Act, or IEEPA. The tariffs apply to a wide range of products imported from numerous countries. Lower federal courts have ruled that the statute did not permit a president to impose such broad trade restrictions unilaterally, setting the stage for final review by the Supreme Court.

The case has now reached the nation’s highest bench, and oral arguments are expected in the coming months. According to the docket published by the U.S. Supreme Court, a decision could arrive before the end of the current term, but no exact date has been set.

Government Response

In a written statement addressing Costco’s suit, White House spokesman Kush Desai said the administration believes the tariffs were lawfully enacted and warned that invalidating them would carry “enormous” economic consequences. Desai expressed confidence that the Supreme Court will resolve the dispute “speedily and properly.” The White House has not yet commented on Costco’s specific request to block further duty collections.

Separately, administration officials have cautioned that a ruling against the government could oblige CBP to refund hundreds of millions of dollars already collected. While the Justice Department has not disclosed an exact figure, court filings indicate that the potential liability spans multiple industry sectors.

Legal Mechanics and Industry Impact

Under customs procedures, importers must pay estimated duties at the time goods enter the country. Those entries remain “unliquidated” for up to a year, during which CBP can adjust the amount owed. After liquidation, the sums become final. Costco argues that the December 15 liquidation deadline threatens to lock in payments that may later prove unlawful, depriving the company of a remedy even if it ultimately prevails.

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The retailer’s lawsuit requests two primary forms of relief: a declaratory judgment that the disputed tariffs were improperly applied and an injunction preventing CBP from completing liquidation or collecting further duties on the covered entries. The filing cites previous appellate rulings cautioning that importers can lose their right to refunds once liquidation occurs, regardless of a later determination that a tariff was invalid.

While each importer’s exposure varies, industry groups say the uncertainty hampers planning and cash-flow management. Companies that rely heavily on imported merchandise must account for the possibility that funds tied up in tariffs will remain unavailable for months—or even years—while litigation proceeds.

Costco, headquartered in Issaquah, Washington, operates more than 850 warehouse stores worldwide and routinely sources consumer goods from numerous foreign suppliers. The company disclosed in court papers that it has already remitted significant sums under the contested tariff program but did not specify the total amount at stake.

Next Steps

The Court of International Trade has not yet scheduled a hearing on Costco’s motion for a preliminary injunction. Legal observers expect the court to move quickly because the liquidation deadline is less than a month away. Any injunction issued by the trade court could be appealed by either party, potentially adding another layer of litigation.

For now, businesses across the country are watching the Supreme Court docket and the related trade-court cases closely. The outcome will determine not only whether existing duties must be repaid but also the scope of presidential authority to invoke emergency powers in the realm of international trade.

Crédito da imagem: Kyle Grillot | Bloomberg | Getty Images