Sawt Falasteen - US retail giant Costco challenges Trump tariffs in court

The suit, filed November 28 at the US Court of International Trade, argues the tariffs are illegal.

It does not specify how much reimbursement the multinational company is seeking on tariffs paid since they took effect earlier in Trump's presidency.

Costco becomes the largest and most well-known US company to challenge the tariffs, which are a cornerstone of Trump's policy to address what he views as a chronic imbalance in US trade and to exert diplomatic pressure on other countries.

Costco and the White House did not immediately respond to AFP's request for comment.

Commerce Secretary Howard Lutnick, when asked Wednesday about the suit by CNBC, said he doubted any tariffs will need to be refunded.

"I really am confident it's not going to happen, and we will have tariffs no matter what going forward," he said.

Several businesses and Democratic-led states have filed complaints with the same court, arguing that the tariffs are unconstitutional as the power to impose them rests with Congress.

The complaints do not address tariffs targeting specific sectors like automobiles and steel.

The US Court of International Trade has already ruled that tariffs imposed by Trump under emergency powers were illegal, a ruling upheld by the Court of Appeals, but the tariffs remain in force pending a ruling from the Supreme Court.

During an early November hearing, the Supreme Court expressed skepticism about the legality of some of the tariffs imposed by Trump.

But according to the documents filed by its lawyers, Costco fears that even if the Supreme Court rules the tariffs illegal, it will not be reimbursed for what it has already paid to US tax authorities.

Pending the Supreme Court's decision, other companies have filed similar lawsuits to Costco, including the US subsidiary of Japanese automaker Toyota.

P.Tamimi--SF-PST