(qlmbusinessnews.com . Tue 2nd Dec, 2025) London, UK —
Supreme Court to Decide Fate of Trump's Emergency Tariffs After Costco's Legal Challenge
In a significant legal challenge against the US government, the international retail behemoth, Costco, has initiated litigation aiming to obtain a comprehensive refund of import duties, contingent upon the Supreme Court deeming President Donald Trump's imposition of tariffs without the consent of Congress as overstepping his authority.
The suit filed by Costco contends that the ‘emergency’ tariffs instated by Trump, which he claims to enact under the International Emergency Economic Powers Act (IEEPA), are unlawful. This action follows after two inferior courts adjudged that Trump had indeed surpassed his remit by levying tariffs under the guise of emergency powers.
This pivotal legal battle has now escalated to the Supreme Court, with numerous firms rallying to ensure their rights to refunds are safeguarded, should the apex court invalidate the contentious tariffs.
In its legal submission, made public during the Thanksgiving break, Costco articulated concerns over the adverse impact of the tariffs on its operations. The retailer underscored the precarious nature of reclaiming the paid duties, in the event the Supreme Court upholds the prior verdicts, hence necessitating “a separate action.”
Although the precise sum sought in reimbursement by Costco remains unspecified, external trade data from the US customs authority indicates that importers, including Costco, have disbursed approximately $90 billion due to IEEPA-related tariffs until the end of September.
Costco proceeded to file this lawsuit at the US Court of International Trade prior to the critical deadline of 15 December 2025, post which it could face difficulties in recouping any monies paid to the US treasury.
Earlier in May, the aforementioned court was the first to declare Trump's tariffs as illegal, a stance further reinforced by the US Court of Appeals.
During the recent Supreme Court hearing, the justices expressed scepticism towards the legitimacy of the president's unilateral decision to implement these global tariffs without the approval of Congress.
Despite the administration's defence that such emergency powers are essential for the president to establish tariffs globally, an oppositional ruling could significantly hamper the government's negotiation leverage with other countries and result in a substantial financial deficit due to the billions already amassed.
The White House, through spokesperson Kush Desai, underscored the grave economic implications of dismissing Trump's tariffs as lawful, expressing anticipation for a prompt and favourable resolution by the Supreme Court.
Remarkably, last month President Trump hailed the fiscal benefits derived from the tariffs, asserting the accumulation of “Trillions of Dollars” and pledging a substantial dividend to the populace, excluding the higher income bracket.
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