The U.S. Court of International Trade in New York and the U.S. Court of Appeals for the Federal Circuit in Washington ruled earlier this year that Trump's largest and boldest import tariffs were unlawful. The case is now before the Supreme Court.
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During a Nov. 5 hearing, several Supreme Court justices expressed doubts about whether the president had broad authority to declare a state of emergency to impose tariffs on goods from almost every country in the world.
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According to the Associated Press, Costco has filed a complaint in New York's commercial court seeking a refund of the duties now. The company is concerned that the process of winding up tariff accounts, which is scheduled to start on December 15, could make it more difficult to recover the money. Importers have only 180 days from the end of this process to protest the bills, which may be too short a time if the Supreme Court's decision drags on.
The retail giant is going toe-to-toe with the Trump administration
The Supreme Court's decision could have huge consequences for the American economy and companies that import goods. The tariffs imposed by Trump generated approximately $90 billion, but repealing them would mean the need to return these funds.
This calls into question the financial stability of many enterprises and the state budget. Costco and other companies want to be prepared for every eventuality.
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Experts whose opinions are quoted by the Associated Press note that it is not certain whether refunds will be granted. Moreover, it is difficult to estimate the amounts involved. Still, a number of companies are already lining up for potential returns.
The Supreme Court's decision, which may not be made until the summer, will be of key importance for the future of American trade policy and public finances. However, Costco and other companies do not intend to wait on their hands.
Companies such as Revlon and Bumble Bee Foods have already taken similar steps. All argue that they want to secure their rights to duty drawback before the accounts liquidation process is completed.
If the Supreme Court overturns the tariffs, the duty refund process could be complicated and unprecedented.
