Could Companies like Costco be in Line for Tariff Refunds?
Tariffs have dominated headlines throughout 2025.
Following months of speculation, President Trump's so-called Liberation Day in April saw him impose a baseline 10% tax on US imports. The policy affected dozens of countries, with some facing charges as high as 50%.
Since then, tariff rates have fluctuated as various trade deals have been negotiated.
Initially, the administration suggested that revenue generated from tariffs might be returned to citizens as rebates. Now, however, it could end up going back to businesses instead.
The Supreme Court is currently reviewing whether President Trump had the authority to impose these tariffs under a 1970s-era national security law.
The outcome could have significant implications: Costco has already filed for a full refund with the US Court of International Trade and, if the court rules against the tariffs, they could be deemed unlawful.
The Presidential powers
President Trump invoked the International Emergency Economic Powers Act (IEEPA) to justify the tariffs. Critics argue that no genuine emergency existed and that tariffs fall outside the powers granted to the President under this act.
Many other companies are reportedly preparing similar legal challenges should the Supreme Court rule the tariffs illegal.
Costco filed its lawsuit over the Thanksgiving holiday, arguing the business has suffered due to these tariffs. According to the BBC, Costco's lawyers stated that "a separate action is necessary" because a refund is not guaranteed "in the absence of their own judgment and judicial relief".
Costco has petitioned the Court of International Trade to declare Trump's tariffs unlawful, halt duty collection and require reimbursement for tariffs already paid. US Customs and Border Protection has not yet responded to inquiries about the case.
Tariffs decisions hangs in the balance
Tariff revenue in fiscal year 2025, which concluded in September, jumped to $195bn from $118bn the previous fiscal year, according to the Committee for a Responsible Federal Budget. Monthly customs duties rose from $7bn in January to $30bn by September.
There is no indication of the figure which Costco is trying to reclaim, but data shows the retailer had paid US$90bn in IEEPA-related tariffs as of late September.
Back in May, that court became the first to determine that Trump's tariffs violated the law ā a ruling later upheld by the US Court of Appeals. During a hearing in November, Supreme Court justices expressed doubt about whether the president could impose such levies without Congress' consent.
Attorneys representing the Trump administration contend that emergency powers grant the president authority to enact these worldwide tariffs.
The administration has cautioned that an adverse decision would hamper its negotiating position with other nations and result in the treasury forfeiting billions already collected.
Other companies have until 15 December 2025 to submit their own claims. Following this date, it will become difficult for them to reclaim any of the funds they have paid.
