Costco sues Trump administration over tariffs as holiday spending shifts

Costco is taking the Trump administration to court, filing a lawsuit challenging a series of tariffs the company says are driving up costs for retailers and consumers.

(CNN)- Costco is taking the Trump administration to court, filing a lawsuit challenging a series of tariffs the company says are driving up costs for retailers and consumers.

The case, now before the U.S. Court of International Trade, argues that the “reciprocal tariffs” imposed on imports earlier this year are unlawful. Business and finance reporter Matt Egan says Costco wants the court to rule the duties invalid — and position itself for potential refunds if the Supreme Court also strikes down similar tariffs currently under review.

Costco says it has been working to keep prices down for shoppers, but the tariffs have made that increasingly difficult. The retailer imports many of the items it sells and must pay additional duties on those goods.
“Some companies have raised prices,” said Joe Lavorgna, counselor to the Treasury secretary. “Many companies haven’t.”

The Trump administration maintains the tariffs should remain in place, arguing they are beneficial to the U.S. economy.
“We’re making a lot of money because of the tariffs that are pouring in,” President Trump said.

The lawsuit lands during the busy holiday shopping season. According to the Federal Reserve, affluent consumers continue to purchase luxury items, while spending among low- and middle-income Americans is slowing.