US retail giant Costco files a lawsuit demanding a refund for tariffs paid, challenging a key Trump trade policy as other companies join the legal fight
WASHINGTON: US retail giant Costco has filed a lawsuit against the administration of President Donald Trump, seeking a refund for tariffs it has paid on imported goods.
The suit, filed on November 28 at the US Court of International Trade, argues the tariffs are illegal.
It does not specify the reimbursement amount sought for tariffs paid since they took effect earlier in Trump’s term.
Costco is the largest and most prominent US company to legally challenge the tariffs, a cornerstone of Trump’s policy to address perceived trade imbalances and exert diplomatic pressure.
Commerce Secretary Howard Lutnick expressed confidence that no tariff refunds would be issued.
“I really am confident it’s not going to happen, and we will have tariffs no matter what going forward,” he told CNBC.
Several other businesses and Democratic-led states have filed similar complaints, arguing the power to impose tariffs rests with Congress, not the president.
The US Court of International Trade has previously ruled that tariffs imposed by Trump under emergency powers were illegal, a decision upheld by an appeals court.
The tariffs remain in force pending a final ruling from the US Supreme Court.
During a hearing in early November, Supreme Court justices expressed skepticism about the legality of some tariffs.
Costco’s legal filing indicates the company fears it will not be reimbursed for payments already made, even if the Supreme Court rules the tariffs illegal.
Pending that decision, other companies including the US subsidiary of Toyota have filed similar lawsuits. – AFP
