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Costco Sues to Block IEEPA Tariffs and Seek Refunds as CBP Liquidation Looms

The retailer seeks court relief to preserve refund claims ahead of CBP liquidation starting December 15.

Overview

  • Costco filed in the U.S. Court of International Trade to invalidate emergency tariff orders, halt their application to future imports, and recover duties it says were improperly collected.
  • The complaint argues the International Emergency Economic Powers Act does not authorize creating or increasing customs tariffs, a view echoed by prior rulings from the trade court and the Federal Circuit.
  • The Supreme Court heard arguments on November 5 over the program’s legality, and the outcome will shape refund rights for Costco and dozens of other importers.
  • Costco cites urgency because CBP plans to begin “liquidating” its entries on December 15, saying one entry has already been finalized, which could foreclose challenges and refunds once liquidation occurs.
  • CBP figures show nearly $90 billion collected under the emergency tariffs, other companies have filed similar suits, and the White House says it expects a prompt Supreme Court resolution.