Costco has sued the Trump administration in an effort to recoup the money it has paid in tariffs if the Supreme Court considers the policy unlawful.
In a complaint filed on Friday in the US Court of International Trade in Manhattan, Costco said Trump’s use of the International Emergency Economic Powers Act to impose tariffs should be deemed illegal.
The Supreme Court is reviewing the legality of Trump’s sweeping ‘reciprocal tariff’ policy, which he introduced as part of his far reaching agenda to reorganize world trade by slapping huge tariffs on major allies and foes.
But Costco has argued it should receive a ‘full refund’ of all the duties it has paid as a result of the policy if the Supreme Court justices rule it is not legally sound.
‘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.
Costco has not revealed how much the duties have cost the company since Trump introduced them but importers have paid nearly $90 billion in tariffs, according to US Customs and Border Protection data up to late September.
Oral arguments delivered by the administration’s lawyers to the Supreme Court in early November received a lukewarm reception, offering an early indication that the justices were skeptical about the case.
Trump has long argued the tariffs have bolstered the US economy and brought in more than $205 billion for the government.
But the policy also earned him the nickname ‘TACO’ – an acronym for ‘Trump Always Chickens Out’ after he repeatedly backflipped on grand statements about the amount certain nations would be tariffed.
In a complaint filed on Friday in the U.S. Court of International Trade in Manhattan, Costco said Trump’s use of the International Emergency Economic Powers Act to impose tariffs should be deemed illegal
Costco has sued the Trump administration in an effort to recoup the billions of dollars it has paid in tariffs if the Supreme Court considers the policy unlawful
He hit China with a whopping 145 percent tariff before dropping it to, on average, 47.5 percent on most goods.
Even America’s closest neighbor and ally, Canada, was at one stage set to be hit with a 45 percent tariff, sending the nation – and other allies – scrambling to negotiate deals with the president.
But American consumers have been hit the hardest, with soaring costs of everyday goods and products making the cost of living crisis an even more pressing concern for everyday households.
Gary Millerchip, Costco’s chief financial officer, warned just a month after Trump won the election – before he’d even returned to the White House – that tariffs would hit hip pockets.
‘When it rains, it rains on everybody,’ he said. ‘Of course, tariffs raise costs. That’s not something that we see as a positive in general.’
He revealed back in May that the brand had held back on passing some costs onto consumers in an effort to limit the pain felt by customers.
He said ‘because they are key staple items’ for customers, produce such as pineapples and bananas were held at the same price.
‘We essentially held the price on those to make sure that we’re protecting the member,’ he said.
Gary Millerchip, Costco’s chief financial officer, warned just a month after Trump won the election that tariffs would hit hip pockets
But Millerchip said about a third of Costco’s sales within the United States are from imported products, and about 8 percent of sales were on items imported from China.
In September, he added: ‘We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense and consolidating our buying efforts globally to lower the cost of goods across all our markets.’
Costco is not the only brand suing Trump in an effort to guarantee refunds if his policy goes pear-shaped.
Global cosmetics powerhouse Revlon, along with Japanese auto supplier Yokohama Tire and motorcycle manufacturer Kawasaki are among a handful of brands which have already launched similar suits.
And Trump has taken a hit at the polls since the implementation of his tariff agenda.
Just last week, approval rating plummeted to 45 percent, according to the Daily Mail/JL Partners latest exclusive polling.
Americans say their pockets are hurting as the price of goods surges with the sweeping tariffs
That’s a drop of six points from the previous survey and 10 point drop over the last two months.
Many of the elements that once made Trump – who has declared as recently as last month that his presidency will mark the dawn of a new ‘golden age’ – so appealing to voters now appear to be the reasons why they are abandoning him.
The president’s economic and immigration policies, as well as his ‘approach to governing’ are the top three reasons voters are souring on him.
Trump has boasted about his tariffs and said that his economic policy is improving the lives of everyday Americans.
But voters in the Daily Mail/JL Partners November 19-20 poll disagree.
Americans say their pockets are hurting as the price of goods surges with the sweeping tariffs.
Since Trump’s tariffs took effect, apparel and textiles are up between eight and 17 percent and groceries and food are up between 1.6 percent 2.8 percent – with some products at a whopping 25 percent increase.
It got so bad that Trump had to place some exceptions on consumables like coffee and bananas.
Now Trump is promising a $2,000 tariff stimulus check to help middle and lower income Americans – though its unclear where the exact avenue in which this would be done.
And on Monday, the UK announced it had secured a 0 percent tariff rate for all UK medicines exported to the US for at least three years in return for the UK spending more on new medicines.
