A growing tariff challenge reached a new level this week after Costco Wholesale Corporation filed a federal lawsuit seeking to block President Trump’s emergency tariff orders and recover duties the company says it was required to pay on imported goods. The case, filed in the Court of International Trade, argues that the emergency-powers statute President Trump used does not authorize the creation or expansion of tariffs.
Costco says it paid these duties throughout the year and now faces a critical deadline. According to the filing, the government will begin liquidating its import entries on or after Dec. 15, locking the duty amounts and potentially preventing the retailer from recovering the funds. The company reports that one of its entries has already been finalized, with more approaching the cutoff, prompting immediate legal action.
Costco is asking the court to declare the tariff orders invalid, block Customs and Border Protection from applying the tariffs going forward, and require the government to refund all duties paid under the emergency tariff program. The retailer’s legal position echoes earlier court victories challenging the same emergency-powers law. Both the Court of International Trade and the Federal Circuit previously ruled that the statute does not authorize tariff authority, creating a foundation for similar cases.
Several companies have already taken action. Learning Resources, Inc. filed suit earlier this year, citing steep increases in its annual duty bill. V.O.S. Selections, Inc., a wine and spirits importer, secured major rulings striking down the tariff orders, sending the broader issue to the Supreme Court. Additional importers—including automotive-parts suppliers, apparel companies, and consumer-goods distributors—have filed comparable challenges, saying the emergency tariffs triggered sudden cost spikes and supply-chain strains.
Costco argues that despite these earlier wins, companies must file their own cases before their import entries are finalized to preserve refund eligibility. The Supreme Court heard arguments on the overarching legal question last month, and its ruling will shape how quickly Costco’s case proceeds. Dozens of businesses watching the outcome may find their refund options determined by the decision.
The lawsuit places one of the country’s largest retailers at the center of a national debate over trade authority, emergency powers, and the limits of executive action—issues that remain significant for businesses navigating global supply chains and federal regulations.
