Why is Costco suing the Trump administration? The reason behind the lawsuit

Costco Wholesale, like many other big and small retailers and businesses across the country, has had to make tough choices about how to deal with Trump’s tariff regime. While the president likes to continually say that the import levies he has imposed will be paid by other countries, the fact of the matter is that US importers, and in turn US consumers, are the ones paying the taxes.

Worried that it may not get its money back should the US Supreme Court invalidate Trump’s tariff regime, the popular big box retailer filed a lawsuit against the Trump administration challenging the legality of how the tariffs were imposed.

Costco is the biggest name to join a raft of companies that are suing the White House over Trump’s signature tariff policy that has been a headache for American business and consumers. Not only because of the resulting cost increases, but also navigating the ever-changing policy.

What is Costco asking for in its lawsuit against Trump?

Costco filed its lawsuit in the US Court of International Trade on Thursday after Customs and Border Protection denied its request to extend the schedule for liquidating the tariffs the company has already paid reported Bloomberg.

Costco wants to ensure that they will be guaranteed a refund for the tariffs the company has already paid should the Supreme Court rule against the White House. This seems likely as all nine Justices expressed doubts about Trump’s use of the International Emergency Economic Powers Act to impose the tariffs without going through Congress, which has the sole authority to impose new taxes.

As of the end of August, so far this year the CBP has collected in total nearly $196 billion from duties, taxes and fees on imported goods. That is a dramatic increase, more than double, from the previous year despite a slight drop in the total import value of goods.

Trump has said the he would use the windfall from the “trillions of dollars” his tariffs are bringing in to hand out $2,000 tariff “dividend” checks to most Americans, offset the cost of his massive tax cuts for the wealthy, and pay down the $38 trillion US debt.

The amount collected so far wouldn’t even come close to covering either of the first two alone.

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