Tuesday, 02 January 2024 12:17 GMT

Costco Files Lawsuit Against Trump Administration


(MENAFN) Costco, the multinational retail behemoth, has launched legal action demanding complete reimbursement of import duties if the U.S. Supreme Court rules against President Donald Trump's invocation of emergency authority to enact tariffs.

Filing with the Court of International Trade during the Thanksgiving weekend, the company pressed judges to invalidate all levies imposed through the International Emergency Economic Powers Act.

Costco contends that Trump overstepped constitutional boundaries by wielding the legislation to implement what he characterized as "reciprocal" tariffs—a strategy already deemed inappropriate by two lower court rulings.

The retail giant asserted that its operations have suffered financial damage from these duties and cautioned that even a Supreme Court determination declaring the tariffs unlawful would not automatically trigger refunds without independent litigation.

While Costco withheld specific figures on its sought recovery amount, import records from the U.S. customs agency reveal that importers collectively paid approximately 90 billion U.S. dollars in associated tariffs through late September.

The lawsuit represents a high-stakes challenge to presidential trade policy, with potential ramifications extending far beyond a single corporation's balance sheet as businesses nationwide await the Supreme Court's verdict on executive tariff powers.

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