Healthy Food Delivery : Costco Is Taking a Stand Against Trump’s Tariffs

Wednesday, December 10, 2025

Costco Is Taking a Stand Against Trump’s Tariffs — What It Means for You

It’s not every day that a shopping giant butts heads with the president of the United States. But that’s exactly what happened earlier this week when Costco sued the Trump administration over tariffs. Costco is one of over a dozen companies that have taken legal action against president Trump, as the legality of the tariffs imposed earlier this year has been called into question. Here’s a look at why Costco initiated this legal action and what it means for shoppers.

Why Is Costco Suing?

The reason behind Costco’s decision to sue the Trump administration is fairly simple. The company believes that the President did not have the authority to impose tariffs earlier this year. The Supreme Court is currently reviewing the legality of those tariffs. By suing, Costco is now in a position to secure a refund should the tariffs be found illegal.

“This is the first time we’re seeing big companies take their heads out of the sand publicly,” Marc Busch, a trade law expert at Georgetown University, told NPR. “It’s nice to finally see some heavyweights joining in the fray.”

Will the Lawsuit Succeed?

The manner in which the Trump administration imposed tariffs earlier this year was highly unprecedented, making it difficult to predict how the Supreme Court will rule. Costco, however, believes the matter is straightforward, stating in its lawsuit that Congress, not the president, has the authority to impose tariffs. According to the lawsuit, Costco alleges that President Trump exceeded the authority granted to him by the International Emergency Economic Powers Act (IEEPA).

“The text of IEEPA does not use the word ‘tariff’ or any term of equivalent meaning,” states the lawsuit.

What Happens If Costco Wins?

Obviously, suing the President is a major step— and one you cannot easily take back. For Costco, the risk was worth the reward because of the potential payout it could earn if the tariffs are now found to be illegal. Should that happen, Costco would now be in line to receive a sizable refund.

If Costco had decided not to sue and the tariffs were still found to be illegal, the company would have been “in a position where the tariffs are ruled unlawful, but they still can’t get their money back,” Emil Stefanutti, CEO of Gaia Dynamics, told CNN. “For a company of their size, that could mean absorbing very high, potentially unrecoverable costs.”

Unfortunately for shoppers, even if Costco does receive a refund, it will all go straight back into the company, having little impact on pricing or the consumer in general.