Trump’s “Fentanyl Tariff” on Toy Aisles Faces Its Final Boss: A Pissed-Off Costco Lawyer

“You better lawyer up, Mr. President…” -Costco to Donnie Politics

Costco just walked into federal court with the energy of my dad when he found out the tire shop voided his warranty… except instead of arguing with the front desk manager, they’re hauling the Trump administration into the U.S. Court of International Trade. Why? Because Costco wants its money back, and it wants it now.

Earlier this year, President Donald Trump painted “reciprocal” tariffs and “fentanyl” tariffs on imports from just about everywhere that isn’t Mars. And he did it using the International Emergency Economic Powers Act… a Cold-War-era law presidents usually reserve for sanctioning rogue nations, not Costco’s Kirkland Signature toy aisle. Costco, like everyone else importing anything from planet Earth, had to pay up. And pay big.

(Source: New York Times)

But now the warehouse monopoly is saying: “Hold up… those tariffs might be illegal… and if they are, we want our refund before the Supreme Court takes its sweet time deciding.” Yes, folks. We’re about to watch the Supreme Court settle whether Costco gets its money back for buying bulk pallets of socks, snack bars, and honey hams. Riveting.

Costco’s latest lawsuit essentially says it paid these tariffs under protest, that even if SCOTUS rules them illegal later they still might not get refunds, and that Customs already told them “lol no” when they asked for more time. 

This all hinges on something called liquidation, which sounds like a clearance sale but is actually the government’s final calculation of what you owe in tariffs. Once an import is liquidated, the case is closed. No refunds. No appeals. No “can I speak to your supervisor?” 

And Costco has a huge batch of imports set to hit that Dec. 15 liquidation deadline. So if the Supreme Court eventually rules Trump didn’t have the power to impose these tariffs, Costco could be standing outside the courthouse like, “Cool decision, Your Honors… but can someone help us get our money back? Anyone? Hello?”

Meanwhile, the judicial system has been eyeballing these tariffs the way TSA eyeballs a suitcase that’s way too heavy. In August, the U.S. Court of Appeals said Trump did not have the authority to impose these duties. Their ruling was basically: “Congress makes tariffs. Not the President. Read the Constitution, my guy.” 

Supreme Court justices didn’t sound too convinced by the administration’s arguments either during the Nov. 5 oral arguments. Which means Costco is trying to get ahead of a ruling that might go, “Yeah… so… about those tariffs… they’re illegal.” Enter: Costco’s panic.

So what does this all mean? We’re gearing up for a legal slugfest where Costco is trying to claw back potentially hundreds of millions in improperly collected tariffs, the Trump administration is warning that refunds could cause economic chaos (translation: “This might get messy”), and SCOTUS is preparing to decide whether the President can unilaterally hurl tariffs at half the planet based on an emergency law from 1977.

If we’re lucky, the Supreme Court will soon be deciding whether Costco gets reimbursed for all the illegally tariffed Kirkland pecans and patio furniture it brought in earlier this year.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.