Costco has sued the Trump administration, demanding immediate tariff refunds while the Supreme Court deliberates whether the president had constitutional authority to impose these duties unilaterally.
Story Highlights
- Costco faces a December 15 deadline that could permanently block tariff refunds even if the Supreme Court rules tariffs illegal
- Lower federal courts already ruled 7-4 that Trump lacked constitutional power to impose tariffs under the Emergency Powers Act
- Dozens of companies are filing similar suits to protect refund rights as hundreds of millions in tariffs hang in the balance
- Supreme Court justices appeared skeptical of the Trump administration’s legal arguments during the November oral hearings
Constitutional Authority Under Supreme Court Review
The legal challenge centers on fundamental constitutional separation of powers. The U.S. Court of Appeals for the Federal Circuit ruled 7-4 in August that Trump exceeded his executive authority when invoking the International Emergency Economic Powers Act.
The court emphasized that “the core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution.” This principle reflects the founders’ intent to place taxation powers squarely with the people’s representatives in Congress.
Here's what is really happening.
Costco wants to preserve its eligibility for tariff refunds IF the SCOTUS eventually rules the tariffs are illegal.The only way to preserve that right is to file suit for a refund prior to Dec. 15th.https://t.co/Bb8zv9QTUE
— Brick Suit (@Brick_Suit) December 2, 2025
Critical December Deadline Forces Costco’s Hand
Costco filed its lawsuit Friday after U.S. Customs and Border Protection denied the company’s request to extend the December 15 liquidation deadline. This date represents the final computation of tariffs on imported goods, after which companies typically lose the right to contest or recover payments.
The company warned that without judicial intervention, it risks permanently losing tariff payments even if the Supreme Court ultimately declares those duties unconstitutional and unlawful.
Broader Corporate Resistance Emerges
Costco joins dozens of other companies filing protective lawsuits as the Supreme Court case unfolds. These businesses face the same liquidation deadlines that could eliminate their refund rights regardless of the high court’s eventual ruling.
The Trump administration imposed these “reciprocal tariffs” on multiple trading partners, plus “fentanyl tariffs” specifically targeting Canada, China, and Mexico. Companies collectively paid hundreds of millions in these duties while legal challenges proceeded through federal courts.
Administration Defends Tariff Authority
White House spokesman Kush Desai defended the tariffs as “lawful” and emphasized the “enormous” economic consequences if the Supreme Court fails to uphold presidential authority. The administration argues that emergency powers justify unilateral tariff imposition to protect American interests.
However, during the November 5 oral arguments, a majority of Supreme Court justices reportedly appeared skeptical of the administration’s constitutional interpretation. The court accepted the case on an expedited basis but has not indicated when it will issue a final ruling.
