Costco is suing the Trump administration for full tariff refunds

Costco Wholesale is suing the Trump administration for a full refund of all duties it paid under Trump’s executive order for “reciprocal” tariffs.

According to the BBC, lawyers are representing Costco filed the lawsuit over Thanksgiving weekend at the United States Court of International Trade. Costco is asking the court to declare all fees collected under the International Emergency Economic Powers Act (IEEPA) illegal.

“Because IEEPA does not clearly authorize the President to set rates … the challenged rate orders cannot stand, and Defendants have no authority to enforce and collect them,” Costco’s attorney wrote in the lawsuit, NBC News. reports.

While it’s unclear how much the world’s third-largest retailer wants, Costco’s lawyers say business has suffered as a result of the tariffs. Trade data from the U.S. Customs and Border Protection Agency shows that importers, including Costco, have paid nearly $90 billion in IEEPA-related tariffs as of September.

Costco’s Chief Financial Officer, Gary Millerchip, told investors during an earnings call in May that about a third of the company’s U.S. sales are imported products.

The retailer filed the lawsuit before December 15, making it easier for Costco to recoup the money it paid to the government.

Trump is the first president ever to use the IEEPA law to impose tariffs. Two lower courts have already ruled that Trump overstepped his authority by using emergency powers to impose tariffs. The lower court upheld the rates while the case was argued. The case is now in the hands of the Supreme Court, and several other companies are trying to protect their right to refunds if the judges strike down the rates.

Cosmetics company Revlon, eyewear maker EssilorLuxottica, motorcycle maker Kawasaki, Japanese auto supplier Yokohama Tire, canned food seller Bumble Bee and other smaller companies have filed similar lawsuits.

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