Will Costco’s Lawsuit Against Trump Succeed? Experts Weigh In

Costco Wholesale Corporation has filed a lawsuit against the U.S. government, contesting the tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). The company argues the administration exceeded its legal authority and seeks refunds for unlawfully paid duties. This case is significant as it questions the extent of presidential power regarding emergency authorities and could impact billions of dollars in duties and consumer prices.

Legal and trade experts suggest Costco has a reasonable chance of success, particularly depending on the Supreme Court’s upcoming ruling in *V.O.S. Selections v. Trump*, which also examines the legality of using IEEPA for tariffs. The Court of International Trade initially indicated tariffs should be refunded uniformly if deemed illegal, but this is under reconsideration. Experts estimate Costco could recover 100% of its IEEPA duties plus interest if successful.

Numerous other companies are filing similar suits to protect their refund rights, anticipating a favorable Supreme Court decision. The outcome will not only determine whether businesses receive refunds but also redefine the limits of executive power and potentially reshape U.S. trade policy. Costco, like other retailers, has been absorbing some tariff costs by adjusting pricing on discretionary items while maintaining stable prices on staples.

(Source：Newsweek)