A MARTÍNEZ, HOST:
Costco has joined the list of companies hoping to get a refund from the federal government for the tariffs that it has paid. Costco quietly filed a lawsuit over the holiday weekend, echoing claims made by smaller companies in a case that's pending at the Supreme Court. NPR chief economics correspondent Scott Horsley is here. So, Scott, wow, a Costco lawsuit. Wasn't expecting that. What do they want out of this lawsuit?
SCOTT HORSLEY, BYLINE: Costco seems to be trying to secure its place near the front of the refund line if, in fact, the Supreme Court decides that some of President Trump's tariffs are illegal. You'll recall the high court heard arguments last month from a group of small businesses and states that say the president overstepped his authority when he used a 1970s law called IEEPA to order double-digit taxes on virtually everything the U.S. imports. Many of the justices seemed sympathetic to the argument that it's up to Congress, not the president, to set tariff policy. But if the high court does decide to unwind these import taxes, Justice Amy Coney Barrett wondered, what happens then?
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AMY CONEY BARRETT: If you win, tell me how the reimbursement process would work. It seems to me like it could be a mess.
HORSLEY: If the tariffs are found to be illegal, it's not at all clear what the process might be for importers to get refunds. By filing this lawsuit, Costco is basically joining the lesser-known companies that initially challenged the tariffs and saying it also wants a piece of any refund pie.
MARTÍNEZ: Yeah. And that case at the Supreme Court has been going on for months now. Why is Costco acting now?
HORSLEY: Yeah. It's partly a technical reason. Costco is staring at a series of deadlines beginning in about two weeks, after which some of the import taxes it's paid might no longer be eligible for a refund, even if the tariffs are struck down. So Costco's asking a court to push that deadline back as we wait for a ruling from the Supreme Court. If the high court rules against the tariffs, this could be kind of a free-for-all with lots of importers scrambling to get refunds. And tariff expert Marc Busch of Georgetown University says companies like Costco are beginning to recognize they better get their foot in the door.
MARC BUSCH: This is the first time we're seeing big companies take their heads out of the sand publicly. The action against IEEPA has been all small company based, and it's nice to finally see some heavyweights joining in the fray.
HORSLEY: Costco is a retail heavyweight, for sure, but it still tread pretty lightly here. The company filed its legal papers on the Friday after Thanksgiving. It didn't make a formal announcement about this case. Costco seems to be trying not to antagonize the administration. Now, a few other big-name companies have also filed lawsuits - Revlon, Bumble Bee Foods. For its part, the White House says it's looking forward to a speedy resolution of the case. And a spokesman warns if the Supreme Court fails to uphold the tariffs, the economic consequences would be enormous.
MARTÍNEZ: Does Costco know how much tariff money it has paid?
HORSLEY: It probably knows. It's not saying, at least in its lawsuit. But, you know, importers collectively have paid tens of billions of dollars in tariffs that may or may not have to be refunded, and that total is growing by about $15 billion with each passing month. Attorney Neal Katyal, who represented small businesses challenging the tariffs, said there are a number of ways the Supreme Court could address that. But, you know, even if the refund process is messy, Katyal said, that's not a good reason to let these tariffs stand.
MARTÍNEZ: That's NPR chief economics correspondent Scott Horsley. Thanks a lot, Scott.
HORSLEY: You're welcome. Transcript provided by NPR, Copyright NPR.
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