Costco is aligning with other firms that aren't delaying to observe whether the Supreme Court strikes down President Donald Trump's most extensive import duties. They're initiating legal action to request reimbursements for the tariffs they've already paid.
TL;DR
- Costco and other firms are suing to get reimbursements for import duties paid.
- Lower courts found President Trump's import duties unlawful; Supreme Court is reviewing.
- Companies want refunds in case the Supreme Court strikes down the tariffs.
- Costco filed legal action to safeguard its entitlement to a full reimbursement.
Earlier this year, the U.S. Court of International Trade and the U.S. Court of Appeals for The Federal Circuit in Washington determined that Trump's most significant and ambitious import duties were unlawful. The matter is presently under consideration by The Supreme Court. During a hearing on November 5th, a number of the high court's judges indicated skepticism regarding the president's extensive authority to proclaim national emergencies for the purpose of levying tariffs on products originating from nearly all nations globally.
If the court strikes down the tariffs, importers may be entitled to refunds on the levies they’ve paid. “It’s uncertain whether refunds will be granted and, if so, how much,” said Brent Skorup, a legal fellow at the libertarian Cato Institute. ”But the possibility has prompted many companies — including Costco — to file actions in the U.S. Court of International Trade to get in line, so to speak, for potential refunds.”
In a legal filing submitted last week to the U.S. Court of International Trade in New York, Costco stated its intention to reclaim funds presently, "to safeguard its entitlement to a full reimbursement." The company, which runs large retail outlets, voiced apprehension regarding its ability to secure a refund after the duty statements have been finalized by Customs and Border Protection, a procedure Costco indicates will commence on December 15th.
Revlon and canned seafood and chicken producer Bumble Bee Foods have made similar arguments in the trade court.
The duties that are being contested in court have generated approximately $90 billion to date. Trump had cautioned in August that the absence of his tariffs would devastate the American economy and result in “1929 all over again, a GREAT DEPRESSION!”
