Hold onto your bulk-sized shopping carts, folks -- Costco is taking on the Trump administration in a legal showdown over tariffs that could shake up the import game.

At the heart of this battle, Costco is suing for a full refund of tariffs paid this year and seeking to halt further collections while the Supreme Court decides if former President Donald Trump even had the authority to impose these duties under the International Emergency Economic Powers Act (IEEPA), as CNBC reports.

Let’s rewind to the start: Trump slapped tariffs on imports from various U.S. trading partners, including specific goods from Canada, China, and Mexico, claiming emergency powers under IEEPA. Lower courts, including the U.S. Court of Appeals for the Federal Circuit, weren’t buying it, ruling 7-4 that tariff powers belong solely to Congress.

Lower Courts Reject Trump's Tariff Authority

“The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” declared the Federal Circuit in its ruling. Well, isn’t that a reminder that even presidents can’t play fast and loose with the rulebook?

Fast forward to Friday, when Costco dropped its lawsuit in the U.S. Court of International Trade. The retailer isn’t just whistling in the wind -- it’s worried about losing millions in paid tariffs if the Supreme Court upholds the lower rulings but refunds aren’t guaranteed.

Adding urgency, Costco faces a looming Dec. 15 deadline for liquidation -- the final tally of import duties -- after which refunds might be off the table. U.S. Customs and Border Protection already denied the company’s request to extend this cutoff.

Costco Fears Losing Tariff Refunds Forever

Costco’s suit points out that even if the tariffs are deemed unlawful, importers might not recover their money for liquidated entries. “This Court and the Federal Circuit have cautioned that an importer may lack the legal right to recover refunds of duties for entries that have liquidated, even where the underlying legality of a tariff is later found to be unlawful,” the lawsuit states.

The company also noted that while importers have six months to protest liquidation, not all cases qualify for such challenges. This isn’t just Costco’s fight -- dozens of other businesses have filed similar suits to safeguard their shot at refunds if the Supreme Court sides against the tariffs.

Now, let’s not pretend this is just about a few bucks back on bulk toilet paper. The Trump administration warns that hundreds of millions in refunds could be at stake if the Supreme Court agrees with lower courts on IEEPA’s limits.

White House Warns of Economic Fallout

White House spokesman Kush Desai didn’t mince words, stating, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact.” While we can appreciate the concern for economic stability, one has to wonder if the real consequence is ignoring Congress’s constitutional turf.

Costco’s stance isn’t about undermining national policy but protecting its bottom line while the legal dust settles. The retailer argues a separate lawsuit is critical since there’s no assurance of refunds for unlawfully collected duties without judicial intervention.

Meanwhile, the Supreme Court took up the administration’s appeal on an expedited basis, though no one knows when -- or how -- it will rule. Until then, Costco and other importers are stuck in limbo, hoping they don’t get bulk-billed for a policy that might not even stand.

Supreme Court Decision Looms Large

Let’s be real: tariffs were a signature move to level the playing field for American workers, a cause worth championing. But if the power to impose them doesn’t legally rest with the executive, then we’re looking at a classic case of overreach, no matter how well-intentioned.

For now, Costco’s fight is a reminder that even giants in the retail world aren’t immune to the fallout of policy disputes. While progressive voices might cheer any rollback of Trump-era rules, conservatives should ask if sidelining Congress’s authority is a precedent worth setting.

It’s a messy debate, but one that deserves our attention over the checkout line. After all, the balance of power isn’t just a political buzzword -- it’s the backbone of our system.