Costco Wholesale Corporation filed a federal lawsuit challenging a series of emergency tariffs issued earlier this year by President Donald Trump, arguing the duties are unlawful and should be refunded, according to a complaint filed Friday in the U.S. Court of International Trade.
The 17-page filing outlines a sweeping challenge to multiple executive orders that placed new tariffs—some exceeding 100%—on goods imported from dozens of countries, including China, Mexico, and Canada.
Costco says it has already paid these duties and faces more financial harm as its imports begin reaching final liquidation stages in mid-December.
According to the complaint, the tariffs were imposed after President Trump declared national emergencies tied to illegal drug trafficking, border activity, and U.S. trade deficits.
The orders relied on the International Emergency Economic Powers Act (IEEPA)—a law that allows presidents to regulate certain foreign transactions during declared emergencies.
Costco and other importers argue IEEPA has never authorized tariffs and that the law cannot be stretched to grant that power.
Federal courts have already expressed agreement.
Earlier this year, the Court of International Trade ruled the administration overstepped its authority, and in August the Federal Circuit affirmed that ruling, calling the tariff actions unlawful.
The U.S. Supreme Court heard arguments in the consolidated tariff cases on Nov. 5 and is expected to issue a ruling soon.
Costco says it cannot wait for the Supreme Court’s decision because tariff-affected imports are set to “liquidate”—a final step in determining duties owed or refunded—as early as Dec. 15, 2025.
Once an entry is liquidated, the complaint notes, an importer’s ability to recover unlawfully collected duties becomes severely limited.
One Costco import entry has already liquidated, according to the filing.
Costco requested a delay in liquidation from U.S. Customs and Border Protection, but the agency denied the request on Nov. 18.
The company says that denial forced it to seek an injunction from the court.
The lawsuit emphasizes that importers will not automatically receive refunds even if the Supreme Court rules the tariffs illegal; each company must secure its own judgment.
The company asks the court to:
- Declare the tariffs unlawful
- Block the government from collecting the duties going forward
- Order refunds of all IEEPA-based tariffs Costco has paid, plus interest
- Suspend upcoming liquidations that could prevent recovery of refunds
- Permanently bar Customs and Border Protection from enforcing the challenged tariff codes for Costco’s imports
Costco also includes an alternative argument: If IEEPA did authorize tariffs, then the law itself violates the Constitution because it hands Congress’s tariff-setting power to the president without clear limits.
The lawsuit details how the tariff orders—some of which placed duties from 20% up to 125% on certain Chinese goods—were repeatedly amended, raised, or suspended throughout February, March, and April, creating what the filing describes as market instability.
Costco plans to file a motion for a preliminary injunction in the coming days to halt liquidation of its tariff-affected imports.
The case will likely move quickly, especially with the Supreme Court’s pending decision expected to reshape the legality of IEEPA-based tariffs nationwide.
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