Summary
Costco has taken legal action against the U.S. government, aiming for a full refund of tariffs if the Supreme Court rules against President Trump's authority to impose them. The case challenges Trump's use of emergency powers under the International Emergency Economic Powers Act. Earlier courts have already decided that Trump overstepped his authority, but the Supreme Court will have the final say.
Key Facts
- Costco filed a lawsuit to get a refund on tariffs if the Supreme Court rules against President Trump's authority.
- The lawsuit claims the tariffs are illegal because they were imposed without Congress's approval.
- Lower courts have previously ruled that Trump's use of emergency powers for tariffs was unlawful.
- Trade data shows importers, including Costco, have paid around $90 billion in these tariffs.
- Costco filed the suit before a December 2025 deadline to ensure a chance to recover the funds.
- The Supreme Court justices have shown doubt about the president's authority to impose tariffs without congressional approval.
- President Trump argues that emergency powers allow him to impose global tariffs.
- The Trump administration says overturning the tariffs could limit negotiation abilities and result in financial losses to the treasury.
