Costco sues to block Trump emergency tariffs, seeks millions in refunds before December 15 deadline
Costco Wholesale filed a federal suit in the U.S. Court of International Trade seeking to block emergency tariffs issued under IEEPA, demanding refunds for millions in duties paid and urging a preliminary injunction before CBP liquidations on December 15, 2025.
- Legal challenge: Costco argues IEEPA does not authorize presidential tariffs and asks the court to declare the orders invalid.
- Urgent deadline: CBP liquidation begins December 15, 2025 — once liquidated, duties are difficult to recover.
- Relief sought: Preliminary injunction to halt liquidation, permanent bar on enforcement for Costco imports, and refunds for duties paid.
- Wider stakes: The case follows earlier rulings and a Supreme Court review with broad separation-of-powers and economic implications.
Background and complaint filing
On November 2025 Costco filed a 17-page complaint in the U.S. Court of International Trade challenging emergency tariff orders issued under the International Emergency Economic Powers Act (IEEPA). Local reporting also detailed the filing and its claims; see the KIRO7 report.
What Costco says and what it wants
Costco’s central contention is that IEEPA does not permit a president to create or raise tariffs — that power belongs to Congress. The company says some rates exceed 100% and were applied to goods from China, Mexico, Canada and many other countries (reported by KIRO7).
Costco has paid duties under the emergency tariff program during 2025 and says the government denied a request to delay liquidation of its import entries (see the Fox Business report).
Requested relief:
- Declare the emergency tariff orders invalid (Fox Business).
- Block U.S. Customs and Border Protection (CBP) from applying the tariffs to Costco’s imports going forward (Fox Business).
- Require refunds for duties already paid under the program (Fox Business).
- Suspend upcoming liquidation actions that could lock in the duty amounts (KIRO7).
Costco said it will file a motion for a preliminary injunction to stop CBP from liquidating the challenged import entries while the case proceeds (KIRO7).
Legal basis: emergency powers and constitutional claims
The tariffs were issued under IEEPA, a statute granting presidents certain authorities during declared national emergencies. The administration cited emergencies tied to illegal drug trafficking, border concerns and trade deficits to justify the tariff actions (KIRO7).
“IEEPA never authorized tariffs,” the complaint argues; alternatively, Costco says IEEPA may be unconstitutional because it transfers Congress’s tariff-setting power to the president without clear limits.
Two-pronged legal approach:
- Primary claim: The statute does not authorize tariffs and cannot be stretched to grant that power to the executive branch.
- Backup constitutional claim: If IEEPA is read to permit tariffs, the company argues that such a reading would violate separation-of-powers principles by improperly delegating legislative authority.
Prior rulings and related litigation
Costco points to earlier decisions where the U.S. Court of International Trade and the Federal Circuit found similar tariff actions exceeded the administration’s authority and were unlawful (KIRO7).
V.O.S. Selections Inc., a wine and spirits importer, secured major rulings that struck down the orders and advanced consolidated appeals to the U.S. Supreme Court; the high court heard arguments in early November 2025 (Fox Business).
December 15, 2025 deadline: why time matters
The most urgent concern is the December 15, 2025 liquidation window. Once CBP begins liquidating import entries, the duty amounts are typically locked in and recovery becomes far more difficult — even if the tariffs are later ruled unlawful (Fox Business, KIRO7).
Costco’s immediate action: The company said one entry already was liquidated and that CBP denied its request to delay liquidation on November 18, 2025, prompting the lawsuit to preserve refund rights (KIRO7).
Financial exposure and business impact
Costco reports paying significant duties under the emergency tariff program during 2025. If CBP liquidates entries, Costco could lose the practical ability to recover those payments. Even a favorable Supreme Court outcome would not automatically refund importers; each company typically must secure its own judgment to obtain money back (KIRO7).
Other importers — from toy makers to apparel firms and parts suppliers — have reported sudden cost hikes and supply-chain disruptions tied to the tariffs, which can ripple to consumers, small distributors and rural businesses (Fox Business).
Broader legal context and next steps
Costco joins a growing list of companies challenging the emergency tariffs. The legal fight has advanced quickly through lower courts and reached the Supreme Court, where consolidated cases were argued on November 5, 2025; that higher-court outcome will shape prospects for refunds and future executive authority on tariffs (Fox Business).
What’s next:
- Costco will seek a preliminary injunction to pause liquidation while the case proceeds (KIRO7).
- The Department of Justice and CBP are expected to defend the liquidation rules and the use of emergency authority.
- The court must weigh Costco’s claimed irreparable harm against the government’s interest in enforcing tariffs and liquidation procedures.
Implications for the United States
Economic: If courts block liquidation and order refunds, retailers could recover millions and relieve some consumer price pressure. If refunds are denied, importers and small suppliers may face lasting higher costs that move through the economy (Fox Business).
Political and legal: A ruling limiting IEEPA would reinforce congressional control over tariffs and curb unilateral presidential tariff moves, raising separation-of-powers consequences that matter to voters and businesses (KIRO7).
Social and local: Higher import costs affect everyday purchases — from tools and clothing to packaged foods — particularly in rural communities where big-box retailers are key suppliers. Legal clarity could stabilize prices and household budgets.
Relief sought and timeline
Immediate: request for a preliminary injunction to stop liquidation of entries. Ongoing: pursuit of a permanent order barring CBP enforcement of the challenged tariff codes for Costco imports and claims for refunds of duties paid (Fox Business, KIRO7).
