On November 5, 2025, the U.S. Supreme Court heard oral arguments on the legality of President Donald Trump’s use of executive orders to impose and alter tariffs. One retail giant decided not to wait for a ruling before securing its right to get refunds if Trump’s tariffs are slapped down by the Court.
What's the Refund Policy Around Here?
The federal government will begin the liquidation (finalizing) of duty amounts on or around December 15. After liquidation, recovery of tariffs is not automatic. To obtain them, importers must file a §1514 protest with U.S. Customs and Border Protection (CBP) within 180 days of the liquidation. That is assuming the Supreme Court sides with retailers.
Warehouse club Costco Wholesale (Costco) is taking a more proactive approach. It filed a lawsuit with the U.S. Court of International Trade on November 28, 2025, to preserve its right to recover any tariffs paid that are declared void.
Costco joins dozens of other U.S. corporations in attempting to safeguard potential refunds if the Supreme Court rules that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unlawful. While the White House continues to insist that the levying of reciprocal tariffs is within President Trump’s emergency powers, lower courts have not agreed. Once again, it will be up to the Supreme Court to determine whether a key policy initiative of the Trump administration is within executive authority.
Seems Like It Could Be a Mess
At oral argument, Justice Amy Coney Barrett did question the plaintiffs as to what the Supreme Court should do regarding refunds, asking "... if you win, how would the reimbursement process work? Would it be a mess?" Plaintiff's counsel admitted that managing refunds will be difficult, but noted that §1514 could provide relief. He also admitted that the Justices could limit the available remedies to prospective relief. Costco appears to have taken this interaction to heart, believing that there may be a better chance at a refund by seeking direct relief in court.
Both small businesses and corporate giants have scrambled to meet increased import duties even as importers have sued the federal government to question the legality of Trump’s tariff activities. Bumble Bee Tuna, Revlon, and Yokohama Tire are among the importers with similar ongoing lawsuits. Leading the way has been spirits and wine importer V.O.S. Selections, Inc., whose victories in federal court led to the issue being heard before the U.S. Supreme Court.
Are They Buying Legal Services in Bulk?
The official entry of Costco into the fray may bode well for those seeking a refund of tariffs. With over $275 billion in revenue during the previous fiscal year, the company has the type of deep pockets that may be necessary to continue to go toe to toe with the CBP and the rest of the federal government. In its lawsuit, Costco points out that tariffs aren’t mentioned anywhere in the text of the IEEPA, charging that Trump is misusing the Act.
Those holding stock in the warehouse club giant are likely to be extremely pleased if the Supreme Court rules that President Trump’s tariff policy is indeed illegal. For now, all involved will have to wait for the outcome.
Related Resources
- Tariff Laws and the Tariff Exemption Process (FindLaw’s Business Tax Law)
- LuLuLemon Doesn’t Consider Imitation as the Sincerest Form of Flattery in Suit Against Costco (FindLaw’s Legally Weird)
- Can You Sue Government Officials? (FindLaw’s Law and Daily Life)
