Costco Challenges Trump Tariffs in Landmark Lawsuit

Costco has filed a major lawsuit against the Trump administration, asking the U.S. Court of International Trade to declare all tariffs imposed under the International Emergency Economic Powers Act unlawful and to refund the duties the company has paid.

Trump is the first president to use the IEEPA to impose tariffs, an action lower courts questioned but allowed to continue while the case moved forward.

The Supreme Court is now reviewing the legality of Trump’s tariff authority, with justices across the spectrum expressing skepticism about the government’s position.

Costco, which relies heavily on imported goods—including fresh food items like pineapples and bananas—says these tariffs have significantly affected its operations, even though it chose not to raise prices on key staples.

With this lawsuit, Costco joins a growing list of major corporations challenging the tariff system and seeking reimbursement.