Costco has filed a lawsuit against the Trump administration seeking a full refund of import taxes paid under President Trump's executive tariff orders, challenging the president's authority under the International Emergency Economic Powers Act to impose tariffs without congressional approval.

About a third of Costco's U.S. sales come from imported goods, with most imports from China facing a minimum 145% tariff that has impacted its orders.

“Whether Costco is successful through its lawsuit in getting compensated for the tariffs that it has already paid on its imports really depends on the Supreme Court’s decision on whether the president has the legal authority to impose tariffs,” says Devashish Mitra, professor of economics and Gerald B. and Daphna Cramer Professor of Global Affairs.

“A blanket tariff on all types of imports from a country or several countries with a single stroke of the president’s pen will be very difficult, if not impossible, if other bases for tariffs are invoked,” Mitra says.

Read more in the Los Angeles Times article, “Costco sues Trump administration to pause tariffs, refund payments.”