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

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!”

Earthquake in Indonesia kills at least 1 person and sets off small tsunami

JAKARTA, Indonesia (AP) — An earthquake in Indonesian waters set off small tsunami waves Thursday morning, killed at least one person and damaged houses and buildings, officials said.

The magnitude -7.4 earthquake was centered in the Molucca Sea at a depth of 35 kilometers (22 miles), the U.S. Geological Survey said.

Tsunami waves were recorded at several monitoring stations less than half an hour later, including in Bitung with a height of 20 centimeters (8 inches) and in West Halmahera with a height of 30 centimeters (a foot), according to Indonesia’s Meteorology, Climatology and Geophysics Agency.

The Pacific Tsunami Warning Center in Honolulu said waves of 5 centimeters (2 inches) were recorded in Davao in the southern Philippines, but there was no threat for more distant areas about three hours after the quake.

Strong shaking lasting 10 to 20 seconds was felt in Bitung, a coastal city in North Sulawesi province, and surrounding areas, as well as in Ternate city in neighboring North Maluku province, according to Indonesia's Disaster Management Agency.

Initial assessments showed light to moderate damage in parts of Ternate, where local disaster officials reported that one church in the Batang Dua Island district was affected and two houses were damaged in South Ternate. In Bitung, damage assessments were still underway, the agency said.

Indonesia's Search and Rescue Agency reported a 70-year-old woman died in North Sulawesi's Minahasa district and another resident was injured.

“At this stage, caution is still required, particularly for communities living along the coast,” Disaster Management Agency spokesperson Abdul Muhari said in a statement. He urged residents not to return to beaches or coastal areas until authorities issue an official all-clear.

At least two aftershocks were recorded following the main quake, both offshore. Officials said neither aftershock had tsunami potential, though they were felt in affected areas.

“We had just woken up and suddenly the earthquake hit... we all ran out of the house,” Bitung resident Marten Mandagi said. “The shaking was very strong,”

Mandagi said he had not seen any damage in his area. “We’re still checking whether there is damage or not. But here we are safe, there are no casualties or destruction,” he said.

Indonesia, a vast archipelago of more than 280 million people, sits on major seismic faults and is frequently hit by earthquakes and volcanic eruptions.