Costco Joins Legal Fight Over Trump Tariffs

Lawsuit Aims to Preserve Refund Rights as Supreme Court Weighs Case

Costco Wholesale Corp. has entered the legal battle against Trump-era global tariffs, filing a lawsuit to ensure it remains eligible for duty refunds if the U.S. Supreme Court strikes down the controversial policy.

The retailer filed its complaint on November 28 in the U.S. Court of International Trade, becoming one of the most prominent companies yet to join a growing list of plaintiffs challenging President Trump’s use of emergency economic powers to impose widespread tariffs on imported goods. Dozens of companies, many of them small businesses, have brought similar lawsuits in recent weeks.

Costco ranks No. 53 on the Transport Topics Top 100 list of the largest private carriers in North America and operates as one of the largest warehouse club chains in the country.

Supreme Court Case Driving a Wave of Lawsuits

The legal maneuver comes as the U.S. Supreme Court weighs the constitutionality of Trump’s tariffs, hearing oral arguments on November 5 in a case that could reshape international trade law. While a decision date is unknown, the Court’s fast-tracked handling of the case has accelerated efforts by businesses to protect their refund rights.

Costco's lawsuit was prompted by Customs and Border Protection (CBP)’s refusal to extend its deadline for finalizing tariff determinations under the International Emergency Economic Powers Act (IEEPA). The company argued that without court intervention, it could miss its window to claim refunds should the Court strike down the tariff program.

While the exact financial impact of the tariffs on Costco remains undisclosed, the company made it clear that significant uncertainty over refund eligibility drove its legal action.

A Rare Legal Step Among Big Retailers

Unlike many major retailers that have chosen to adapt or absorb tariff-related costs, Costco is one of the few to take legal action. Other recent plaintiffs include Revlon Consumer Products and Kawasaki Motors.

Costco has said that it’s actively working to mitigate tariff impacts—primarily affecting its non-food inventory—by consolidating suppliers, shifting sourcing to other countries, and ordering inventory in advance. The company has also adjusted merchandising strategies when costs become too high.

“We’re doing everything we can,” said CFO Gary Millerchip earlier this year. “Whether that’s working with suppliers to find efficiencies to offset the impact of tariffs, or sourcing from different countries.”

Tariffs' Ripple Effect Across Retail

The Trump administration’s tariff strategy has affected product pricing across electronics, apparel, and consumer goods. Although changes in tariff rates and exemptions have blunted some of the impact, prices for certain imports have still risen.

Costco said it has maintained stable pricing on high-priority items like bananas and pineapples, while allowing cost increases on non-essential products like flowers. Company leaders cited Costco’s limited product assortment and scale as key advantages in navigating supply chain disruptions.

White House and Industry Reactions

White House spokesperson Kush Desai defended the tariffs, stating, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact.”

During the November 5 hearing, several Supreme Court justices appeared skeptical of the administration’s tariff justification under emergency economic powers. Lower courts have ruled against the federal government in earlier cases but allowed the tariffs to remain in place pending the high court’s decision.

What This Means for Businesses

Costco’s case, Costco Wholesale Corp. v. Customs and Border Protection, is part of a larger legal trend as businesses prepare for potential tariff refunds or new supply chain strategies depending on how the Supreme Court rules.

If the Court finds the tariffs invalid, companies without preemptive lawsuits may be left out of potential reimbursements—putting those who filed, like Costco, in a more favorable position.

As tariff and trade uncertainties continue to ripple through the freight, logistics, and retail sectors, businesses should stay informed and consult their legal or compliance teams about potential exposure.

Need Help Navigating Tariff-Driven Risk?

At Allcom Insurance, we help carriers, brokers, and logistics companies stay protected through regulatory shifts, supply chain disruptions, and economic uncertainty. If your operation needs a coverage review or guidance on emerging risks, we’re here to help.

Call 866-277-9049 or email info@allcomins.com to speak with an advisor.