FiscalFusion

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, instead going to court to demand refunds on the tariffs they’ve paid; earlier this year, the U.S. Court of International Trade and the U.S.

Court of Appeals for the Federal Circuit ruled that Trump’s largest import taxes are illegal, and with the case now before the Supreme Court — where several justices expressed doubt on Nov. 5 that the president had broad authority to declare national emergencies to impose tariffs on goods from nearly every country — importers may become eligible for refunds, prompting companies like Costco to file actions to “get in line” for potential repayment, though it remains uncertain whether refunds will be granted and in what amount; Trump argues he has sweeping tariff authority under the 1977 International Emergency Economic Powers Act, but he has lost twice in court, and trade lawyer Joyce Adetutu says Costco is trying to ensure that if the Supreme Court overturns the IEEPA tariffs — potentially as late as summer — it will already have a judgment in place to collect a refund; in its complaint filed last week, Costco said it is demanding its money back now “to ensure that its right to a complete refund is not jeopardized,” noting concerns about the Customs and Border Protection “liquidation” process finalizing its tariff bills starting Dec.

15, after which importers have 180 days to protest, and Costco fears that window could shrink depending on the timing of the Supreme Court decision; companies like Revlon and Bumble Bee Foods have filed similar cases over tariffs that have raised around $90 billion, though how any refund process would function remains unclear, with CBP regularly issuing small-scale refunds but never anything of this magnitude; Trump warned in August that losing his tariffs would “destroy the American economy” and trigger “1929 all over again, a GREAT DEPRESSION!”.