Costco Wholesale Corporation is suing the federal government to block President Donald Trump’s emergency tariffs and recover money the retailer says it was wrongly charged for imported goods.
The case, filed in the Court of International Trade, alleges that Trump used an emergency powers law to impose tariffs on goods from China, Mexico, Canada and dozens of other countries, even though the statute does not allow the president to create or increase tariffs.
Costco says it has been paying those dues throughout the year and now faces a deadline that could prevent it from getting that money back.
The company says the government will begin finalizing – or “liquidating” – its imports on or after December 15. Once an import is liquidated, the import duty is locked and importers may lose the ability to challenge or recover these charges.
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A customer loads items into a vehicle at a Costco store in Vallejo, California on Thursday, May 29, 2025. (David Paul Morris/Bloomberg/Getty Images)
Costco says one of its entries has already been completed and more are approaching the border, prompting the company to immediately file a lawsuit.
Costco is asking the court to invalidate the tariff orders, bar Customs and Border Protection from applying the tariffs to its shipments in the future and require the government to refund any duties the company has already paid under the emergency tariff program.
The filing puts Costco among a growing group of companies challenging the legality of Trump’s tariff actions.
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President Donald Trump made comments about reciprocal tariffs during an event in the Rose Garden. (Brendan Smialowski/AFP via Getty Images/Getty Images)
Learning Resources, Inc., a maker of educational toys and classroom products, filed suit earlier this year, warning that the emergency tariffs would significantly increase the annual excise tax.
VOS Selections, Inc., an importer of wine and spirits, has won major rulings vacating tariff decisions, sending the issue to the Supreme Court.
Other importers — including apparel companies, auto parts suppliers and consumer goods distributors — have filed similar challenges, arguing that the tariffs caused sudden cost increases and supply chain disruptions that companies could not absorb.
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Costco’s lawsuit is based on those previous victories. Both the Court of International Trade and the Federal Circuit previously ruled that the law on emergency powers invoked by Trump does not allow tariffs.
But Costco argues that these decisions alone won’t guarantee refunds for businesses unless they file their own cases before their submissions are completed.
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The Supreme Court heard arguments on the broader legal issue last month, and a decision is expected soon.
That ruling could determine how quickly Costco’s case develops — and whether dozens of other companies can seek refunds for fees they say were imposed without legal authority.
