Why Costco Demands a ‘Full Refund’ From Trump After International Tariffs Rock the U.S. Economy
Trump's tariffs are rocking companies left and right... And that's exactly why Costco is the latest to sue for a "full refund." The post Why Costco Demands a ‘Full Refund’ From Trump After International Tariffs Rock the U.S. Economy first appeared on The Root.
Black News 
Never would we think to see the day that a big-box retail store would sue the president… but alas, here we are. After President Donald Trump’s highly controversial tariff policy, wholesale grocery giant Costco is demanding a “full refund” in the form of a lawsuit.
The company filed a lawsuit against the Trump administration in the U.S. Court of International Trade in New York. The Nov. 28 suit declared Trump’s economic plan— which cites the 1977 International Emergency Economic Powers Act (IEEPA) to impose tariffs— as unlawful… and they’re not the only ones either.
We previously told you Trump’s international tariffs aren’t going over well with businesses forced to pay extra in order to trade in the states. While Trump said the unprecedented tariffs will ultimately put money back in America’s pocket, dozens of companies have since filed lawsuits after being impacted by the economic plan. Costco is simply the latest on the long list of businesses taking beef with Trump’s tariffs, CNBC News reported.
Given the wholesale grocery store’s checkered past going up against the president, their lawsuit is definitely the cherry on top. We also told you Costco was one of the leading brands doubling down on DEI after Trump signed an executive order to get rid of diversity in January. Now, Costco is calling out Trump for alleged recklessness with the economy.
“Because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them,” Costco’s lawsuit obtained by USA Today read. Of all of the companies suing Trump over tariffs, Costco is one of the largest, reporting over $275 billion in its last fiscal year.
The suit comes on the heels of a separate Supreme Court hearing about Trump’s tariffs. Several lower courts previously ruled that Trump did not have legal power to impose tariffs, but now that the matter is before the Supreme Court, Costco wants to make sure they get back their money spent on tariffs before the justices rule.
The Supreme Court, which typically rules in favor of the administration with a 6-3 conservative majority, appeared skeptical of Trump’s tariff plan, NBC News reported. This could mean bad news for the president, whose approval rate continues to drop.
According to Business Insider, there are still ways for Trump to impose his tariffs even if the court rules against him… and that’s exactly why Costco is taking the legal route! Importers have already paid almost $90 billion under IEEPA, according to recent U.S. Customs and Border Protection data. Now, it’s up to the court to decide if Costco and other impacted businesses should be reimbursed for Trump’s economy.
Costco’s chief financial officer, Gary Millerchip, told analysts back in September, “We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense and consolidating our buying efforts globally to lower the cost of goods across all our markets.”
The post Why Costco Demands a ‘Full Refund’ From Trump After International Tariffs Rock the U.S. Economy first appeared on The Root.
