The largest supermarket chain in the United States, Costco, has filed a lawsuit against the country’s government to demand the return of tariffs it has been forced to pay since US President Donald Trump approved sweeping duties on importing products from other countries on April 2. Costco thus joins the group of companies that have already demanded the return of tariffs from the Trump administration in the event that the Supreme Court declares the White House’s major economic action illegal.
It is the first large company to take this step. In recent months, dozens of small and medium-sized companies have gathered around the platform The tariffs we pay (We pay the fees) to defend the return of definitions. An Illinois gaming company and a New York alcohol importer representing the platform, along with complaints from some Democratic officials, have taken the case to the Supreme Court, which must decide whether the path President Trump used to approve the tariffs, the Emergency Powers Act of 1977 (IEEPA), is legal.
Costco filed a complaint with the U.S. Court of International Trade on Friday, specifically arguing that this legal avenue is inappropriate for a scale of this size. The court in which Costco complained a few months ago concluded that the tariffs were illegal. Costco is justifying the lawsuit as “to ensure that your right to a full refund is not jeopardized.”
In these types of cases, companies that have previously sued usually have an easier time obtaining damages. In fact, judges usually order the money back to the companies that paid them, and for the rest of the companies that haven’t filed a lawsuit, the court process can take much longer.
The Supreme Court held a session on November 5 to hear the parties’ positions. During the hearing, a number of Supreme Court justices expressed doubts about the path chosen by Trump to impose tariffs on products from almost all countries of the world, because they believe that this should not be done with an international emergency law in times of war, which is written for other purposes.
Although the Supreme Court expressed its doubts on Thursday, it is not yet clear when it will issue its ruling. Some analysts believe, according to the opinion compiled by Bloomberg, that the decision of the Supreme Court judges will be faster than usual, perhaps before Christmas, given the importance of the decision, which is of great importance to international trade.
If the court overturns the tariffs, American companies that purchased products abroad and had to pay the tariffs would be entitled to a refund of the taxes paid. The United States collected about $90 billion in reciprocal tariffs.
According to Bloomberg, analysts’ expectations indicate that Trump will lose in court. Betting platform PredictIt predicts there is an 87% chance the Supreme Court will rule against the White House. Polymarket estimates Trump’s chances of losing at 74%.
Trump, of course, defends that the President of the United States should have almost unlimited power to impose tariffs, under the International Emergency Economic Powers Act (IEEPA) of 1977. But the fact is that he has already suffered two defeats in the courts, which reminds us that these kinds of international trade decisions must go through Congress.
US Commerce Secretary Howard Lutnick confirmed last week that regardless of the meaning of the Supreme Court ruling, companies that import products from abroad must get used to paying higher taxes. “I want to remind you that the president has many other powers,” Lutnick said in a statement. Bloomberg.