❓WHAT HAPPENED: The corporate media falsely reported that Costco is suing to overturn President Donald J. Trump’s tariffs on Tuesday. In reality, the company is seeking the right to recoup import duties paid, should the tariffs be overturned in a separate case before the Supreme Court.
👤WHO WAS INVOLVED: Costco, the corporate media, President Trump, and the U.S. Supreme Court.
📍WHEN & WHERE: Tuesday, December 2, 2025.
💬KEY QUOTE: “RETAIL REVOLT: The wholesale giant is suing the federal government to strike down President Trump’s emergency tariffs and recover funds the retailer says it was improperly required to pay on imported goods,” Fox News claimed in an inaccurate report.
🎯IMPACT: The retail giant could see a significant revenue boost should the courts agree that the tariffs are unconstitutional and that the tariffs already paid can be recouped from the federal government.
Costco is not suing the federal government in an effort to overturn tariffs imposed by President Donald J. Trump, despite claims by the corporate media—including Fox News. While the major U.S. retailer has filed a lawsuit, the legal action aims to ensure the company can recoup money already paid in import duties should an unrelated case currently under consideration by the Supreme Court result in Trump’s tariffs being declared unconstitutional.
Major corporate media outlets on Tuesday erroneously claimed Costco’s lawsuit was essentially the same as the current Supreme Court case. Fox News, in a post on X (formerly Twitter), declared, “RETAIL REVOLT: The wholesale giant is suing the federal government to strike down President Trump’s emergency tariffs and recover funds the retailer says it was improperly required to pay on imported goods.” This was accompanied by a graphic stating, “Costco files federal lawsuit challenging Trump’s emergency tariff orders on imported goods.”
RETAIL REVOLT: The wholesale giant is suing the federal government to strike down President Trump’s emergency tariffs and recover funds the retailer says it was improperly required to pay on imported goods. pic.twitter.com/FtFHlVigSB
— Fox News (@FoxNews) December 2, 2025
However, the lawsuit does not directly challenge the tariffs. Instead, Costco is seeking relief—including from a December 15 liquidation deadline on tariff revenues—to ensure it can recoup the monies it has paid on import duties should the Supreme Court rule that President Trump’s tariffs are unconstitutional. The lawsuit is necessary as it is unlikely—if not impossible—that the high court will hand down a decision before the December liquidation deadline.
The best way to understand Costco’s legal action is in the context of a refund, which is what the retailer is essentially suing to guarantee a right to. Consider an individual who pays local property taxes, and a separate lawsuit results in the city’s property assessments being overturned by a court. The property owner, in theory, should have a right to recoup the property taxes that the city government unlawfully collected. This is essentially what Costco is seeking, but for potentially unlawful import duties.
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