Costco becomes biggest company yet to demand refund of Trump tariffs
[December 03, 2025] By
PAUL WISEMAN
WASHINGTON (AP) — Costco is joining other companies that aren't waiting
to see whether the Supreme Court strikes down President Donald Trump's
most sweeping import taxes. They're going to court to demand refunds on
the tariffs they've paid.
The specialized U.S. Court of International Trade in New York and the
U.S. Court of Appeals for the Federal Circuit in Washington ruled
earlier this year that Trump's biggest and boldest import taxes are
illegal. The case is now before the Supreme Court. In a Nov. 5 hearing,
several of the high court's justices expressed doubts that the president
had sweeping power to declare national emergencies to slap tariffs on
goods from almost every country on earth.
If the court strikes down the tariffs, importers may be entitled to
refunds on the levies they've paid. “It’s uncertain whether refunds will
be granted and, if so, how much,'' said Brent Skorup, a legal fellow at
the libertarian Cato Institute. ”But the possibility has prompted many
companies — including Costco — to file actions in the U.S. Court of
International Trade to get in line, so to speak, for potential
refunds.''
Trump claims that he has an almost unlimited right to impose tariffs — a
power the Constitution gives to Congress, under the 1977 International
Emergency Economic Powers Act (IEEPA) — but has now lost twice in court.
Trade lawyer Joyce Adetutu, a partner at the Vinson & Elkins law firm,
said that Costco is trying to “make sure that if and when the Supreme
Court overturns the IEEPA tariffs, which could come as late as the
summertime, they have the judgment in place’’ and can collect a refund.
In a complaint filed last week with the trade court in New York, Costco
said it is demanding the money back now “to ensure that its right to a
complete refund is not jeopardized.″
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A lone shopper pushes a cart toward the entrance of a Costco
warehouse, March 13, 2025, in Sheridan, Colo. (AP Photo/David
Zalubowski, File)
 The operator of warehouse-sized
stores expressed concern that it might struggle to get a refund once
its tariff bills have been finalized — a process called
"liquidation'' — by the Customs and Border Protection agency, a
process Costco says will start Dec. 15. Importers have 180 days
after liquidation to protest the tariff bills. Costco worries that
"their timeline might be whittled away depending on how long it
takes to get a Supreme Court decision,'' Adetutu said.
Revlon and canned seafood and chicken producer Bumble Bee Foods have
made similar arguments in the trade court.
The tariffs facing the court challenge have raised around $90
billion so far.
It’s unclear how a refund process would work. As import tax bills
are finalized and sometimes appealed, Customs and Border Protection
“refunds tariffs every day, but not to this extent,” Adetutu said.
“This is a substantial amount of tariff income that has been
collected. And really there hasn’t been a case where there’s been an
influx of refund requests.’’
Trump warned back in August that the loss of his tariffs would
destroy that American economy and lead to "1929 all over again, a
GREAT DEPRESSION!”
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