Costco has filed a lawsuit against the Trump administration over what it calls “unlawful” tariffs. The big-box retailer is the latest company to pursue legal action, joining a growing list of businesses and state agencies challenging the administration’s policies.
What began with small businesses and lower-level state officials has now expanded to include the country’s third-largest retailer and the largest wholesale members club.
The company filed its lawsuit in the Court of International Trade, arguing that tariffs collected under the International Emergency Economic Powers Act were unlawful. Costco said it is seeking a “full refund” for all duties paid as a result of the administration’s “reciprocal tariffs,” according to NBC News.
The filing does not specify the amount Costco hopes to recover, but U.S. Customs and Border Protection data shows that importers have paid nearly $90 billion under the IEEPA.
During a May earnings call, Chief Financial Officer Gary Millerchip said nearly a third of Costco’s U.S. sales come from imported products, according to NBC News.
Despite the tariffs, Millerchip said Costco would not raise prices, noting that the items affected were “key staple items” for customers.
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In response to the suit, White House spokesperson Kush Desai said in a statement, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact. The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”
The Supreme Court has already heard some oral arguments tied to Trump’s broader tariff agenda, and justices from both sides of the ideological spectrum appeared skeptical of the government’s position.
Costco’s legal challenge is the latest in a steady increase of pushback against the administration, arriving amid internal controversies, key election losses, concerns about the 2026 midterms and renewed scrutiny over the Epstein investigation.
Trump has attempted to roll back some tariffs in recent months, though critics note that the administration implemented them in the first place.
Costco’s business footprint underscores why its complaint is notable. Shoppers spend one-eighth of their retail dollars at the chain — almost 65% higher than the U.S. average — and tend to spend twice as much and visit more frequently than members of other wholesale clubs, according to a 2024 analysis by Numerator.
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The firm also found that Costco’s customer base skews high-income and largely urban and suburban. That demographic has historically favored Trump, but his approval among high-income suburban Americans has dropped 8.5% in recent months.
Overall, Trump’s approval rating sits at 38%, the lowest of his political career, according to The Economist — and lower than any of the past four presidents at this point in their terms. Even Fox News polling shows a decline.
Voters cite inflation and the broader economy as key concerns — issues Trump has frequently highlighted as strengths.
For an administration that prioritizes economic signaling, mounting legal challenges from major retailers may carry particular weight. If more companies follow Costco’s lead, the financial pressure could become harder for the White House to ignore.
