Costco is making headlines as it becomes one of the largest retailers to sue the Trump administration over tariffs. The company is seeking a refund if the Supreme Court rules these import duties illegal.
Currently, the Supreme Court is reviewing Trump’s tariffs, which affect nearly all imports. During recent arguments, justices expressed doubts about their legality. Previous lower court rulings suggested that Trump misused emergency powers to implement these tariffs.
Many companies from various sectors are filing lawsuits to recover costs if the Supreme Court declares the tariffs unconstitutional. Among them are skincare brand Revlon and canned food producer Bumble Bee. Now, Costco has decided to join this growing list.
Marc Busch, a trade law expert at Georgetown University, highlighted the significance of this move. He stated, “It’s the first time we’re seeing big companies take their heads out of the sand publicly.” Historically, smaller firms have led legal challenges against these tariffs, so seeing larger companies act adds weight to the ongoing discussions.
While Costco hasn’t disclosed how much it has already paid in tariffs, the company is apprehensive about potentially losing some of those funds, even if the Supreme Court reverses the tariff policy. Notably, Costco sources about one-third of its products from overseas, primarily non-food items.
In a recent survey by the National Retail Federation, 65% of retailers expressed concerns over the impact of tariffs on consumer prices, indicating a widespread anxiety about the financial ramifications of these duties.
Overall, Costco’s legal stance represents a larger movement among retailers grappling with the challenges of importing goods under current tariff laws. The outcome of this Supreme Court case could reshape trade practices and affect pricing across the U.S. retail landscape.
For more on the legal battles surrounding tariffs, you can read the suit filed by Costco.
