The lawsuit comes ahead of the Supreme Court’s decision regarding the legality of Trump’s tariffs.
The lawsuit filed on Friday also calls for a halt to the collection of import duties.
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Costco said the tariffs need immediate attention because the deadline to refund taxes already paid is Dec. 15. The lawsuit alleges that U.S. Customs and Border Protection rejected the company’s request to extend the deadline.
Costco did not specify the amount it believes should be refunded.
“Importers who paid IEEPA fees, including plaintiffs, are not guaranteed a refund for the tariffs they unlawfully collected in the absence of its judgment and judicial relief,” the lawsuit says.
Costco is also requesting a halt to further collections, according to the lawsuit filed in the U.S. Court of International Trade.
“Plaintiff seeks relief from the impending liquidation to ensure that his right to a full refund is not jeopardized,” the lawsuit says.
The wholesale warehouse giant joins other big companies, including eyeglass maker Ray-Ban and makeup company Revlon, who are also suing the administration. Costco is represented by law firm Crowell & Moring. The firm declined Al Jazeera’s request for comment.
“They are filing within the statutory deadline to receive (refunds) for tariffs they (allegedly) collected illegally,” Gregory Schaefer, a professor of international law at Georgetown University School of Law, told Al Jazeera.
According to Schaefer, companies have 180 days to contest liquidation, or be liquidated.
“Tariff liquidation is the final, official calculation and assessment of duties, taxes, and charges outstanding on imported goods.”
The White House has withdrawn the lawsuit.
White House spokesperson Kush Desai said in a written statement to Al Jazeera, “The economic consequences of President Trump’s failure to uphold lawful tariffs are enormous, and this lawsuit highlights that fact. The White House looks forward to the Supreme Court’s prompt and appropriate resolution of this case.”
Supreme Court’s decision is about to come
The Supreme Court is considering whether the White House has the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA).
This law gives the US President the authority to regulate imports in the event of a national emergency. The larger question is whether Trump’s tariffs meet those conditions. The date of the decision is unclear, as the judges heard arguments in early November, about a month earlier.
Schaefer believes there is a good chance the court will rule against the Trump administration.
“It appears that at least four votes will be in opposition, and I thought Justice Gorsuch would vote against him, given his concerns,” Schaefer said, referring to Supreme Court Associate Justice Neil Gorsuch, whom Trump appointed during his first term as president.
“This question makes it more likely that the decision will go against the Trump administration.”
In oral arguments at the November hearing, Gorsuch pushed for the administration’s interpretation of IEEPA.
Gorsuch said at the time, “As a practical matter, Congress cannot regain this power once it has been handed over to the President.”
“It’s a one-way shaft toward the gradual-but-sustained accretion of power into the executive branch and away from the people’s elected representatives.”
On Wall Street, Costco stock was up 0.2 percent in afternoon trading.
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