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Costco becomes biggest company yet to demand refund of Trump tariffs

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Costco becomes biggest company yet to demand refund of Trump tariffs
News

News

Costco becomes biggest company yet to demand refund of Trump tariffs

2025-12-03 05:17 Last Updated At:05:30

WASHINGTON (AP) — Costco is joining other companies that aren't waiting to see whether the Supreme Court strikes down President Donald Trump's most sweeping import taxes. They're going to court to demand refunds on the tariffs they've paid.

The specialized U.S. Court of International Trade in New York and the U.S. Court of Appeals for the Federal Circuit in Washington ruled earlier this year that Trump's biggest and boldest import taxes are illegal. The case is now before the Supreme Court. In a Nov. 5 hearing, several of the high court's justices expressed doubts that the president had sweeping power to declare national emergencies to slap tariffs on goods from almost every country on earth.

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.''

Trump claims that he has an almost unlimited right to impose tariffs — a power the Constitution gives to Congress, under the 1977 International Emergency Economic Powers Act (IEEPA) — but has now lost twice in court. Trade lawyer Joyce Adetutu, a partner at the Vinson & Elkins law firm, said that Costco is trying to “make sure that if and when the Supreme Court overturns the IEEPA tariffs, which could come as late as the summertime, they have the judgment in place’’ and can collect a refund.

In a complaint filed last week with the trade court in New York, Costco said it is demanding the money back now “to ensure that its right to a complete refund is not jeopardized.″

The operator of warehouse-sized stores expressed concern that it might struggle to get a refund once its tariff bills have been finalized — a process called "liquidation'' — by the Customs and Border Protection agency, a process Costco says will start Dec. 15. Importers have 180 days after liquidation to protest the tariff bills. Costco worries that "their timeline might be whittled away depending on how long it takes to get a Supreme Court decision,'' Adetutu said.

Revlon and canned seafood and chicken producer Bumble Bee Foods have made similar arguments in the trade court.

The tariffs facing the court challenge have raised around $90 billion so far.

It’s unclear how a refund process would work. As import tax bills are finalized and sometimes appealed, Customs and Border Protection “refunds tariffs every day, but not to this extent,” Adetutu said. “This is a substantial amount of tariff income that has been collected. And really there hasn’t been a case where there’s been an influx of refund requests.’’

Trump warned back in August that the loss of his tariffs would destroy that American economy and lead to "1929 all over again, a GREAT DEPRESSION!”

FILE - A lone shopper pushes a cart toward the entrance of a Costco warehouse, March 13, 2025, in Sheridan, Colo. (AP Photo/David Zalubowski, File)

FILE - A lone shopper pushes a cart toward the entrance of a Costco warehouse, March 13, 2025, in Sheridan, Colo. (AP Photo/David Zalubowski, File)

DEIR AL BALAH, Gaza Strip (AP) — A grandmother and her 5-year-old grandson burned to death in Gaza when their tent caught fire, as thousands of Palestinians battle harrowing winter conditions in flimsy makeshift housing and the humanitarian crisis persists.

The nylon tent in Yarmouk caught fire Thursday night from cooking, a neighbor said.

As 2026 begins, the shaky 12-week-old ceasefire between Israel and Hamas has largely ended large-scale Israeli bombardment of Gaza. But Palestinians are still being killed by Israeli fire, especially along the so-called Yellow Line that delineates areas under Israeli control, and the humanitarian crisis is compounded by frequent winter rains and colder temperatures.

On Friday, American actor and film producer Angelina Jolie visited the Rafah border crossing between Egypt and the Gaza Strip. The only crossing between the territory and a country other than Israel, it remains closed despite Palestinian requests to reopen it to people and aid.

Over past weeks, cold winter rains have repeatedly lashed the sprawling tent cities, causing flooding, turning Gaza’s dirt roads into mud and causing buildings damaged in Israeli bombardment to collapse. UNICEF says at least six children have now died of weather-related causes, including a 4-year-old who died in a building collapse.

At least three children have died of hypothermia, according to Gaza’s Health Ministry. High temperatures in December were in the 60s Fahrenheit (15-20 Celsius), but dipped into the mid-40s F (6-8 C) on some nights.

Aid groups say not enough shelter materials are getting into Gaza during the truce. Figures recently released by Israel’s military suggest it hasn’t met the ceasefire stipulation of allowing 600 trucks of aid into Gaza a day, though Israel disputes that finding. There is also concern that Israel's recent suspension of more than three dozen international aid groups from operating in Gaza will make it even harder to get supplies like tents in.

Palestinians have long called for mobile homes and caravans to be allowed in to protect them against living in impractical and worn out tents. In Yarmouk, people live in nylon tents near a garbage dump.

Ashraf al-Suwair said he woke up to the sound of screaming as his neighbors shouted “fire! fire!" He said nylon is like fuel, easy to ignite. “We need a good place that suits the people and the children of Gaza, instead of burning to death," he said.

Jolie met with members of the Red Crescent on the Egyptian side of the Rafah border crossing and then visited a hospital in the nearby city of Arish to speak with Palestinian patients on Friday, according to Egyptian officials.

Reopening the crossing, which would allow Palestinians to leave Gaza — especially the ill and wounded who could get specialized care unavailable in the territory — has been contentious. Israel has said that it will only allow Palestinians to exit Gaza, not enter, until militants in Gaza return all the hostages they took in the attack on Oct. 7, 2023, which triggered the war. The remains of one hostage are still in Gaza.

In addition, Israel says Palestinians wanting to leave Gaza will have to get Israeli and Egyptian security approval. Egypt, meanwhile, says it wants the crossing immediately opened in both directions, so Palestinians in Egypt can enter Gaza. That’s a position rooted in Egypt’s vehement opposition to Palestinian refugees permanently resettling in the country.

For more than two decades until 2022, Jolie was a special envoy to the U.N. refugee agency. She has continued to advocate for human rights issue and has visited conflict areas, including Ukraine.

On Friday the foreign ministers of Arab and Muslim countries, including Egypt, Qatar and Saudi Arabia, expressed concern about Gaza's humanitarian situation.

The situation has been “compounded by the continued lack of sufficient humanitarian access, acute shortages of essential life-saving supplies, and the slow pace of the entry of essential materials," said the joint statement.

Israel has said throughout the war that Hamas was siphoning off aid supplies, an accusation that the United Nations and aid groups have denied. Last month, the World Food Program said that there have been “notable improvements” in food security in Gaza since the ceasefire.

Since the ceasefire between Israel and Hamas began, 416 people have been killed and 1,142 wounded in Gaza, according to the Health Ministry. The overall Palestinian death toll from the war is at least 71,271. The ministry, which doesn't distinguish between militants and civilians in its count, is staffed by medical professionals and maintains detailed records viewed as generally reliable by the international community.

The Israel-Hamas war began with the Hamas-led Oct. 7 attack in southern Israel that killed about 1,200 people and saw 251 taken hostage.

Meanwhile, Israel continues operating in the occupied West Bank.

On Friday, the Palestinian Prisoners media office said that Israel carried out numerous raids across the territory, including the major cities of Ramallah and Hebron. Nearly 50 people were detained, following the arrest of at least 50 other Palestinians on Thursday, most of those in the Ramallah area.

Israel's military said there were arrests made of people “involved in terrorist activity." Last Friday, a Palestinian attacker rammed his car into a man and then stabbed a young woman in northern Israel on Friday afternoon, killing both, police said. Raids were conducted afterward in the attacker's West Bank hometown.

The Palestinian Prisoner’s Society says that Israel has arrested 7,000 Palestinians in the West Bank and Jerusalem this year, and 21,000 since the war began. The number arrested from Gaza isn't made public by Israel.

Find more of AP’s Israel-Hamas coverage at https://apnews.com/hub/israel-hamas-war

American actor and film producer Angelina Jolie, front left, greets Red Crecent workers during her visit to the Rafah border crossing between Egypt and the Gaza Strip in Rafah, Egypt, Friday, Jan. 2, 2026. (AP Photo/Mohamed Arafat)

American actor and film producer Angelina Jolie, front left, greets Red Crecent workers during her visit to the Rafah border crossing between Egypt and the Gaza Strip in Rafah, Egypt, Friday, Jan. 2, 2026. (AP Photo/Mohamed Arafat)

The bodies of Amal Abu Al-Khair and her grandchild, Saud, are transferred to Al-Shifa Hospital in Gaza City after they were killed when their tent caught fire overnight at the Yarmouk displacement camp, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

The bodies of Amal Abu Al-Khair and her grandchild, Saud, are transferred to Al-Shifa Hospital in Gaza City after they were killed when their tent caught fire overnight at the Yarmouk displacement camp, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Fatima Abu al-Bayd inspects what remains of her mother's tent after her mother, Amal Abu Al-Khair, and grandchild, Saud, were killed when it caught fire overnight at the Yarmouk displacement camp in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Fatima Abu al-Bayd inspects what remains of her mother's tent after her mother, Amal Abu Al-Khair, and grandchild, Saud, were killed when it caught fire overnight at the Yarmouk displacement camp in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Fatima Abu al-Bayd inspects what remains of her mother's tent after her mother, Amal Abu Al-Khair, and grandchild, Saud, were killed when it caught fire overnight at the Yarmouk displacement camp in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Fatima Abu al-Bayd inspects what remains of her mother's tent after her mother, Amal Abu Al-Khair, and grandchild, Saud, were killed when it caught fire overnight at the Yarmouk displacement camp in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Magdi Abu Al-Khair bids farewell to his mother, Amal Abu Al-Khair, after she and her grandchild, Saud, were killed when their tent caught fire overnight at the Yarmouk displacement camp, at Al-Shifa Hospital in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

Magdi Abu Al-Khair bids farewell to his mother, Amal Abu Al-Khair, after she and her grandchild, Saud, were killed when their tent caught fire overnight at the Yarmouk displacement camp, at Al-Shifa Hospital in Gaza City, Friday, Jan. 2, 2026. (AP Photo/Jehad Alshrafi)

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