Trump's Trials - Costco sues the Trump administration over tariffs

Episode Date: December 3, 2025

Costco has filed a lawsuit challenging the Trump administration's tariffs. The retailer joins other companies hoping to get a refund for the import taxes it's already paid.Support NPR and hear every episode of Trump's Terms sponsor-free with NPR+. Sign up at plus.npr.org.Learn more about sponsor message choices: podcastchoices.com/adchoicesNPR Privacy Policy

I'm Scott Detrow, and this is Trump's Terms from NPR. We're under invasion from within. If you're not going to protect your citizens, President Trump will. We all serve at the pleasure of the president. The golden age of America is upon us. We are in the golden age. Every episode, we bring you one of NPR's latest stories about the 47th president, and now he is trying to remake the federal government.

Today's story starts right after this. I mean, Martinez. Costco has joined the list of companies hoping to get a refund from the federal government for the tariffs that it has paid. Costco quietly filed a lawsuit over the holiday weekend, echoing claims made by smaller companies in a case that's pending at the Supreme Court. NPR chief economics correspondent Scott Horsley is here. So, Scott, wow, Costco lawsuit wasn't expecting that. What do they want out of this lawsuit? Costco seems to be trying to secure its place near the front of the refund line if, in fact, the Supreme Court decides that some of President Trump.

Trump's tariffs are illegal. You recall the high court heard arguments last month from a group of small businesses and states that say the president overstepped his authority when he used a 1970s law called AEPA to order double-digit taxes on virtually everything the U.S. imports. Many of the justices seem sympathetic to the argument that it's up to Congress, not the president, to set tariff policy. But if the high court does decide to unwind these import taxes, Justice Amy Coney-Barrant wondered, what happens then?

If you win, tell me how the reimbursement process would work. It seems to me like it could be a mess. If the tariffs are found to be illegal, it's not at all clear what the process might be for importers to get refunds. By filing this lawsuit, Costco is basically joining the lesser-known companies that initially challenged the tariffs and saying it also wants a piece of any refund pie. Yeah, and that case of the Supreme Court has been going on for months now, why is Costco acting now? Yeah, it's partly a technical reason. Costco was staring at a series of deadlines beginning in a back. two weeks after which some of the import taxes it's paid might no longer be eligible for a refund, even if the tariffs are struck down. So Costco's asking a court to push that deadline back as we wait for a ruling from the Supreme Court. If the high court rules against the tariffs,

this could be kind of a free-for-all with lots of importers scrambling to get refunds. And tariff expert Mark Bush of Georgetown University says companies like Costco are beginning to recognize they better get their foot in the door. This is the first time we're seeing big companies take their heads out of the sand publicly, the action against IEPA has been all small company-based. And it's nice to finally see some heavyweights joining in the fray. Costco is a retail heavyweight for sure, but it still tread pretty lightly here. The company filed his legal papers on a Friday after Thanksgiving. It didn't make a formal announcement about this case. Costco seems to be trying not to antagonize the administration.

Now, a few other big-name companies have also filed lawsuits, Revlon, bumblebee foods. For its part, the White House says it's looking forward to a speedy resolution of the case, and a spokesman warns if the Supreme Court fails to uphold the tariffs, the economic consequences would be enormous. Does Costco know how much tariff money it has paid? It probably knows. It's not saying, at least in its lawsuit, but, you know, importers collectively have paid tens of billions of dollars in tariffs that may or may not have to be refunded.

And that total is growing by about $15 billion with each passing month. Attorney Neil Cotill, who represented small businesses challenging the tariffs, said there are a number of ways the Supreme Court could address that. But even if the refund process is messy, Cotill said, that's not a good reason to let these tariffs stand. That's NPR chief economics correspondent, Scott Horsley. Thanks a lot, Scott. You're welcome.

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