Supreme Court rules against Trump's tariffs - what it could mean for Costco's lawsuit
The Supreme Court ruled against Donald Trump's use of IEEPA to impose tariffs, potentially impacting $175 billion in refunds and Costco's ongoing lawsuit.Summary
The Supreme Court, in a 6-3 decision, struck down President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to justify the imposition of tariffs, determining the act doesn’t grant the president authority for such sweeping measures. These tariffs generated approximately $133.51 billion in revenue for fiscal years 2025 and 2026, representing over 60% of total tariff revenue from Trump’s trade actions. The ruling potentially necessitates the refunding of over $175 billion in collected tariffs, as estimated by the Penn-Wharton Budget Model, though the court did not directly rule on the issue of refunds.
Several companies, including Costco, Bumble Bee Foods, Revlon, EssilorLuxottica, Kawasaki Motors, and Yokohama Tire, have sued the Trump administration seeking full refunds for tariffs paid, with Costco also seeking a declaration that the IEEPA Tariff Orders are unconstitutional. Costco has absorbed the cost of tariffs on staple items to protect its members but may be forced to raise prices if the tariffs remain in effect.
The decision also casts doubt on Trump’s promise of a $2,000 stimulus check funded by tariff revenue. While Trump suggested the substantial tariff income would allow for these payments and potentially reduce national debt, tax policy experts believe the revenue is insufficient to cover the estimated $279.8 to $606.8 billion cost of such a stimulus.
(Source：The Mirror Us)