Costco has filed a lawsuit against the Trump administration, right?

They are not just saying the tariffs are excessive... they are outright declaring it "illegal, refund it" and have drawn their swords.

It's common for small businesses in the U.S. to complain, but if Costco, the third-largest retailer in the U.S., is knocking on the courthouse door, it indicates a serious situation.

They filed a lawsuit in the International Trade Court, claiming the tariffs were based on the International Emergency Economic Powers Act (IEEPA), but they argue that this is illegal and are demanding a full refund of all tariffs paid so far. While they didn't specify the amount, data shows that companies have paid nearly $90 billion in tariffs due to IEEPA. That's a staggering sum.

According to Costco's CFO, one-third of their U.S. sales come from imported goods, and despite being hit hard by tariffs, they said, "We won't raise prices." They claim they can't raise prices on staple items for customers, which seems a bit like a heroic stance in the grocery market. The White House responded immediately, stating, "If you don't comply with Trump's legal tariffs, the economic loss will be significant, and this lawsuit demonstrates that."

They even mentioned the Supreme Court with confidence. However, the Supreme Court has already conducted some hearings related to tariffs, and reports suggest that judges, regardless of their political leanings, have raised eyebrows at the government's arguments. Ironically, the Trump administration has recently attempted to reverse some tariffs. It looks like they set the tariffs and are now trying to lift them, leading to the question, "Then why did you impose them in the first place?"

Looking at the numbers, it's clear why Costco has stepped up. One-eighth of total consumer spending in the U.S. is at Costco, and they are analyzed to be visited twice as often as other wholesale clubs. Moreover, their customer base is high-income, with a high percentage living in urban and suburban areas, and they were originally a strong supporter of Trump.

However, their approval rating has dropped by 8.5% in just a few months. The overall approval rating is 38%. This is the lowest compared to the last four administrations. Even Fox News polls have shown a decline, which says it all.

Economy and inflation are cited as the biggest complaints, and this lawsuit has erupted from what was supposed to be their strong point. The administration can't be pleased about this. However, this could be just the beginning, and the problem may escalate further.

If one grocery store starts a lawsuit and others follow suit? It's hard not to think, "This looks a bit too big to ignore..." In other words, the current situation is like Costco ringing the bell at the checkout. "Ding, can I get a tariff refund?" they have simply stated.

The reason Costco is so adamant about taking on the government in court is that the core issue revolves around whether the tariffs were legal in the first place.

The Trump administration imposed tariffs based on the International Emergency Economic Powers Act (IEEPA), but Costco argues, "That law was not made to be used in this way; the procedures were violated, and there is an abuse of power," claiming illegality. In simple terms, the government's position is, "We have the authority to raise tariffs because of a national emergency," while Costco's stance is, "They imposed tariffs arbitrarily under the pretext of an emergency."

Moreover, the legal conditions for applying emergency economic powers are strict, and whether those criteria were met is a point of contention.

What if these tariffs were imposed 'spontaneously without legal grounds'?

Companies could get refunds for the money they paid, and the government's policy itself could be shaken.

Thus, this fight is not just a simple refund lawsuit but has become a challenge to the administration's authority over tariffs.