Dec. 2 (UPI) — Wholesale club Costco filed a lawsuit against the President Donald Trump administration, asking the Court of International Trade to say that tariffs collected under the International Emergency Powers Act are illegal and demanding a full refund.
In the filing on Friday, the company said it wants a full refund of all duties paid under the IEEPA if the U.S. Supreme Court finds the tariffs unconstitutional.
“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 said in the lawsuit.
The suit doesn’t say how much Costco has paid in tariffs.
Several companies have filed suit to get their own refunds if the court decides against the administration. The court has appeared skeptical of the government’s arguments in favor of tariffs, so it could rule against the tariffs.
Costco said it filed a separate suit from other retailers because it is “not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief.”
The firm Crowell & Morning has brought about 50 similar lawsuits on behalf of separate companies, The Hill reported.
On Costco’s earnings call in May, CFO Gary Millerchip said that about a third of Costco’s sales in the United States are imported products, NBC News reported. But he said the company decided not to raise prices on fresh food from Central and South America “because they are key staple items” for its customers.
“We essentially held the price on those to make sure that we’re protecting the member,” Millerchip told investors.
Through October, the government had collected $205 billion in tariffs.
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