President Donald Trump’s tariffs are receiving a legal challenge from a surprising source.
Costco Wholesale Company has filed a lawsuit against the Trump administration’s emergency tariffs in an effort to retrieve the funds it says were “improperly required to pay on imported goods,” according to Fox Business.
“The case, filed in the Court of International Trade, argues that Trump used an emergency-powers law to impose tariffs on goods from China, Mexico, Canada, and dozens of other countries, even though the statute does not allow the president to create or raise tariffs,” the report notes. “Costco says it has paid these duties throughout the year and now faces a deadline that could prevent it from getting that money back.”
Ultimately, the company now faces the choice to “liquidate” its import stock on or before December 15 and lose the duties, or fight the administration’s authority to have imposed the tariffs in the first place and force the government to refund all duties that have been paid. It would also prevent the Customs and Border Patrol (CBP) from imposing tariffs on future imports.
“Costco says one of its entries has already been finalized and more are approaching the cutoff, prompting the company to file its lawsuit immediately,” the Fox Business article reads.
But they’re not the only company interested in challenging the president’s authority on tariffs.
“Learning Resources, Inc., a maker of educational toys and classroom products, filed suit earlier this year, warning that the emergency tariffs would push its annual duty bill sharply higher,” the report details. “V.O.S. Selections, Inc., a wine and spirits importer, has won major rulings striking down the tariff orders, sending the issue to the Supreme Court.”
The order has faced attacks from a number of other industries, including “apparel companies, automotive-parts suppliers and consumer-goods distributors,” which often rely on imported stock to fulfill American demands. They argued that the sudden nature of the tariffs created hardship for their companies in the form of cost increases and disruptions to supply chains.
“Costco’s lawsuit draws on those earlier wins. Both the Court of International Trade and the Federal Circuit previously ruled that the emergency-powers law Trump invoked does not authorize tariffs,” the report points out. “But Costco argues those decisions alone will not guarantee refunds for companies unless they file their own cases before their entries are finalized.”
Trump supporters argue that tariffs force countries that have previously taken advantage of American trade to come to the table to negotiate more reasonable conditions, while critics complain that American consumers are forced to endure price hikes on their favorite products that barely impact the exporting country.
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Sierra Marlee is a millennial whose hunger for the truth in a world of fake news has led her to write. Marlee also contributes to BizPac Review.
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