Retailer Costco is suing the Trump administration over tariffs, anticipating that the Supreme Court will rule against President Donald Trump’s emergency powers.
While Trump is promising $2,000 tariff dividend checks to Americans, Costco is seeking a full refund of the tariffs it has paid to the Trump administration for its foreign products, with interest, before these checks can be distributed. Earlier this month, Costco reported that it asked Customs and Border Protection to include the retailer in liquidated tariff dividends, but the request was denied.
Costco cited tariffs against Mexico, Canada, and China as the reason it paid increased tariffs since Trump signed the executive orders. According to the retailer, these were “unlawfully collected tariffs.”
The Trump administration is also facing lawsuits from Kawasaki Motors, Revlon, and Bumble Bee Foods, among others, over the tariffs. Meanwhile, Solicitor General D. John Sauer has presented an argument before the Supreme Court in defense of the tariffs.
Trump cited emergencies involving fentanyl and trade deficits to justify imposing tariffs under the International Emergency Economic Powers Act. The key question for the Supreme Court is whether the law grants the president authority to impose tariffs.
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Traditionally, Congress has controlled tariffs. Article I, Section 8 of the Constitution states, “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, … but all Duties, Imposts and Excises shall be uniform throughout the United States.”
Costco is among the largest retailers in the world with over 800 locations in eight countries.