RETAILERS REVOLT

Costco Steps In to Join Major Legal Battle Against Trump

The big-box giant joins a growing list of corporations racing to protect themselves as Trump’s tariff gambit faces a skeptical Supreme Court.

A major retailer has jumped into the escalating court fight over Donald Trump’s tariff regime, seeking to protect itself as the president’s signature trade gambit faces a potentially devastating Supreme Court review.

Costco filed suit in the U.S. Court of International Trade, warning it needs to secure its place in line for refunds if the justices strike down the Trump administration’s sweeping duties imposed under the International Emergency Economic Powers Act.

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The move puts the country’s third-largest retailer by revenue alongside a growing roster of industry heavyweights challenging Trump’s fast-moving tariff machine. Revlon Consumer Products Corp. and Kawasaki Motors Manufacturing Corp. have lodged similar cases.

The Supreme Court heard arguments last month on Trump’s so-called reciprocal tariffs, with key justices sounding skeptical of the administration’s justifications.

Lower courts have already ruled against the White House in some early challenges but allowed the tariffs to remain in effect until the high court issues its decision. A ruling before the end of the year is possible, though not guaranteed.

The policies—worth tens of billions of dollars a month—have scrambled supply chains and pressured retailers struggling to hold prices down for consumers still cautious after years of inflation. The administration has urged the justices to issue clarity quickly.

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“The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous, and this suit highlights that fact,” White House spokesperson Kush Desai told The Wall Street Journal.

A long list of companies and Democratic-led states have also sued. But if the Court knocks out the tariffs Trump initiated in April, how any previously paid duties might be unwound remains an open question. The justices offered little indication during arguments, and while Congress could theoretically retroactively authorize the tariffs, such a move is considered unlikely.

Costco did not detail in its filing how much it has paid under the duties since Trump’s second term began. The company has said it is selectively adjusting prices to offset the impact—holding steady on staples like pineapples and bananas imported from Central and South America, while raising prices on flowers sourced from the same region.

“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,” Costco Chief Financial Officer Gary Millerchip said in September, adding that the retailer has also shifted its product assortment when necessary.

The White House and Costco have been approached for comment.

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