Costco’s Tariff Refund Lawsuit: What It Signals for APPA Members

In the opening minutes of APPA’s latest Trade Talks tariff update, our experts zeroed in on one headline: Costco’s new federal lawsuit challenging Trump’s emergency tariff orders on imported goods. For pet product importers, this case is more than political theater, it’s a playbook for how to protect your own tariff refund rights.

Here are the key takeaways for APPA members.

1. Costco just fired the opening legal salvo at the Court of International Trade

Costco has sued the U.S. government in the Court of International Trade (CIT), arguing that Trump’s “emergency” tariffs under the International Emergency Economic Powers Act (IEEPA) were never authorized by law. The retailer is asking the court to:

• Declare the emergency tariff orders invalid
• Block U.S. Customs and Border Protection (CBP) from applying those tariffs going forward
• Require the government to refund all duties it has already paid on those imports.

Critically, Costco timed its lawsuit around a looming December 15 liquidation deadline, the point when CBP “finalizes” entries and duty amounts become locked in. Once entries are liquidated, many importers lose their ability to challenge those US tariffs on imported goods or claim refunds later.

Earlier CIT and Federal Circuit decisions in the V.O.S. Selections line of cases already found that these IEEPA-based tariffs exceeded presidential authority, but Costco’s complaint argues that those rulings won’t automatically send checks to every importer. Companies that want refunds may need to be on record at the CIT before liquidation.

2. Possible next steps: extensions, then CIT if needed

On the Trade Talks update, the APPA trade team noted that Costco’s move looks like the first big test case in what could become a broader refund strategy if the Supreme Court ultimately strikes down the IEEPA tariffs.

In a recent Fox News Article, the complete legal filing for the Costco complaint was published, which our experts argued could provide guidance to other companies as a possible road map in determining their strategy for any potential refunds.

Behind the scenes, the same pattern is starting to show up among smaller importers:

• Rebecca shared that this week alone, she has three clients filing liquidation extension requests and actively discussing CIT complaints if those extensions are denied.
• There’s growing talk that importers may join together in class action or consolidated CIT cases to share costs instead of each company filing a solo lawsuit. However, at this point there is no clear direction for that.

For pet product manufacturers, importers and private-label brands, the implied playbook is:

1. Request liquidation extensions on affected entries to keep your refund window open.
2. If extensions are denied, consider whether joining a CIT complaint (potentially grouped with others) makes sense for your level of exposure.

This mirrors Costco’s logic but scales it to companies that don’t have big-box legal budgets.

3.  Why this matters for pet industry SMBs 

Recent reports show that Costco joining a growing list of companies across retail, consumer goods and industrial sectors suing to preserve tariff refund rights ahead of the Supreme Court’s IEEPA decision. This may signal other large companies following suit.
For small and mid-sized APPA members, the stakes are high:

• If the Supreme Court agrees that the Trump emergency tariff orders were unlawful but punts the question of refunds back to the Court of International Trade, the companies that secured extensions, filed protests or joined CIT cases will be in the best position to recover paid duties.
• Those who stayed on the sidelines may find that their entries are already liquidated and their ability to reclaim import duties has quietly disappeared.

In a pet market already squeezed by Section 301 tariffs, higher landed costs and supply chain disruption, leaving potential tariff refunds on the table is a risk most pet product importers can’t afford.

APPA’s Trade Talks series and our online Trade and Regulatory resource center will continue to track the Costco tariff refund lawsuit, the Learning Resources v. Trump Supreme Court case, and any emerging CIT strategies so that APPA members have a clear, practical roadmap not just headlines to navigate this shifting trade environment.

If you have questions that you need answers to, please join us on December 17th at 3 pm for our open office hours, where we answer your trade and tariff-related questions in real time. 

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