Before the US Supreme Court weighs in on the legality of tariffs, Costco has filed a lawsuit against the administration of US President Donald Trump.
The lawsuit also calls for the imposition of import duties to be blocked.
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Due to the December 15 deadline for refunding taxes that have already been paid, Costco claimed that the tariffs must be resolved right away. The lawsuit claims that US Customs and Border Protection refused to grant the company’s request for an extension of the deadline.
Costco did not specify how much money it thinks should be reimbursed.
According to the lawsuit, “Importers who have paid IEEPA duties, including Plaintiff, are not guaranteed a refund for those unlawfully collected tariffs in the absence of their own judgment and judicial relief.”
Costco is also asking for a pause in future collections, according to the lawsuit, which was filed in the US Court of International Trade.
According to the lawsuit, “Plaintiff seeks relief from the impending liquidations to ensure that its right to a full refund is not threatened.”
The wholesale warehouse giant joins other large corporations in bringing legal action against the administration, including Revlon and Ray-Ban, which produce eyeglasses. Crowell &, Moring, a law firm, represents Costco. The organization declined to comment on Al Jazeera’s request.
According to Gregory Shaffer, professor of international law at Georgetown University School of Law, “They are filing within the statutory deadline in order to receive the]refunds] for the tariffs that were [allegedly]collected illegally.”
According to Shaffer, businesses have 180 days to file a lawsuit over the liquidation or the owed funds.
The final, official calculation and assessment of the duties, taxes, and fees owed on imported goods are the “liquidation of tariffs.”
The lawsuit has been withdrawn by the White House.
This lawsuit highlights the enormous economic repercussions of President Trump’s lawful tariffs, according to the lawsuit. In a written statement to Al Jazeera, White House spokesman Kush Desai stated that the White House anticipates the Supreme Court’s swift and appropriate resolution of this dispute.
The looming Supreme Court decision
The Supreme Court is considering whether the IEEPA (International Emergency Economic Powers Act) grants the White House the authority to impose tariffs.
In the event of a national emergency, the law gives the US president the authority to impose restrictions on imports. Trump’s tariffs have largely raised questions about whether they adhere to those requirements. As justices heard arguments  nearly a month ago in early November, a decision is looming with an uncertain date.
According to Shaffer, there is a good chance that the court will rule in favor of the Trump administration.
According to Shaffer, “I got the impression that Justice Gorsuch would vote against, given his concerns,” referring to Supreme Court associate justice Neil Gorsuch, who was appointed by Trump during his first term as president.
The questioning raises the possibility that the choice will be made against the Trump administration.
Gorsuch objected to the administration’s interpretation of the IEEPA in oral arguments at the November hearing.
According to Gorsuch, “Congress can’t, in reality, give this power back once it’s been given to the president.”
It’s a one-way ratchet toward the executive branch’s gradual but permanent expansion of power away from the electorates of the people.
