Costco sues the Trump administration, seeking a refund of tariffs

Costco Wholesale sued the Trump administration in the Court of International Trade, seeking a refund of tariffs imposed under an emergency powers law.

Costco Wholesale has sued the Trump administration, asking the Court of International Trade to consider all tariffs collected under the International Emergency Economic Powers Act unlawful.

The company said in a filing Friday that it is seeking a “full refund” of all duties under the act paid as a result of President Donald Trump's executive order that imposed what he called "reciprocal" tariffs.

“Because IEEPA does not clearly authorize the President to set tariffs ... the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them,” Costco's lawyer writes in the lawsuit.

The Supreme Court is reviewing the legality of Trump's sweeping tariff agenda. In oral arguments in early November, justices appeared skeptical about the government's case to let them continue.

Both conservative and liberal justices asked tough questions of Solicitor General D. John Sauer, though some of the conservatives seemed more sympathetic to his arguments.