Costco Wholesale Corp. is Suing the Federal Government after Trump (R) used a 1977 Emergency Powers Law, to Impose Sweeping Tariffs on many Imports. In a Complaint Filed in the U.S. Court of International Trade, the Retailer asks the Court to Set Aside Tariffs Imposed under the International Emergency Economic Powers Act (IEEPA) and to Ensure Costco can Recover a Refund of any Duties it has Paid. Costco’s Filing Argues that IEEPA does Not Plainly give the President Authority to Impose Tariffs.
Costco stated, “Because IEEPA does not clearly authorize the President to set tariffs, the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them.” The Company is Seeking a “Full Refund” of All Tariffs Paid under Trump’s Order. According to Reporting by USA Today, Costco’s Lawsuit was Filed to Ensure it would be Eligible for Reimbursement if the Supreme Court ultimately Rules the Tariffs Unlawful.
Costco joins a Growing List of Importers that have taken similar Steps to Preserve Refund Claims. Companies including Revlon, EssilorLuxottica, Kawasaki Motors, Bumble Bee Foods, and Yokohama Tire, have Filed related Actions or Protective Pleadings to make sure they can seek Money Back, if Courts ultimately declare the IEEPA-based Duties Unlawful.
Those earlier Lower-Court Rulings found Trump Exceeded His Authority, and the Issue is now before the U.S. Supreme Court. Costco’s Lawsuit coincided with its Announcement that Gina Raimondo (D), former Commerce Secretary under Biden (D), has been Nominated to its Board of Directors. Raimondo previously Voiced Doubts about Trump’s Tariff Policies.
The Timing drew Criticism from Entrepreneur Mario Nawfal, who Wrote, “Costco isn’t even pretending anymore. They’re openly stacking the board with Democratic operatives while waging legal war against the administration’s economic agenda.” Costco has also stood Firm on its Diversity, Equity, and inclusion Policies, Resisting Pressure from Trump Allies and Anti-DEI Activists.
Corporate Communication Scholar Paul Argenti of Dartmouth’s Tuck School of Business said that Costco’s Actions are Not particularly Risky. “What Costco is doing is not what I would consider very Wwoke’ or something to get Fired-Up about. Costco knows who they are, they have a Strong set of Values and they are Sticking to them. In the End, they are going to be rewarded for that," He said.
Political Scientist David Primo of the University of Rochester, noted that Costco’s Consumer Base is Unusually Resilient to Political Controversies, stating, “Boycotting Target is easy. Boycotting Costco would require a lifestyle adjustment for many.”
A Yahoo/YouGov Survey found that 52% of Americans believed Tariffs Harmed the Economy in the Short Term, while 43% said they had Longer-Term Negative Effects.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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