MAGA Turns On Costco After Retail Giant Hauls Trump To Court Over 'Unconstitutional Tariffs'

A corporate heavyweight has turned courtroom adversary and ignited a social media firestorm.

The wholesale behemoth Costco Wholesale has filed suit against US President Donald Trump's administration, with the demand for a full refund on import duties the retailer paid under the President's sweeping emergency tariffs.

The move has unleashed renewed fury among MAGA-aligned supporters, many of whom have denounced the company and vowed to boycott it.

Costco Challenges Tariffs Under Emergency-Powers Law

Costco filed a complaint in the United States Court of International Trade (USCIT) on 28 November 2025, contending that the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) are unlawful.

The company argues that IEEPA was never designed to authorise global tariffs. In its filing, Costco states, 'Because IEEPA does not clearly authorise the President to set tariffs ... the Challenged Tariff Orders cannot stand'.

Costco seeks three forms of relief, a judicial declaration that the tariffs are invalid, an injunction preventing further application of the duties, and a 'complete refund' for all tariffs the firm has paid.

The challenge comes against the backdrop of a related case before the Supreme Court of the United States (SCOTUS), which heard oral arguments in early November, and where several justices expressed scepticism about the administration's asserted power to impose tariffs unilaterally.

Why Costco is Racing to Court Now

According to the lawsuit, the government's customs agency, US Customs and Border Protection (CBP), will begin 'liquidating' import entries on 15 December 2025. After liquidation, the duty amounts lock, which could permanently prevent importers from challenging or recouping tariffs even if SCOTUS strikes them down.

Costco warned that at least one of its import entries has already been finalised under the new tariff regime. Legal experts say the filing is a pragmatic move designed to 'get in line' for possible refunds and preserve the company's rights.

Costco did not disclose the specific amount it seeks. The retailer simply notes in its filing that it served as 'importer of record' for many of the affected goods.

Company executives have stressed that roughly one-third of Costco's US sales derive from imported goods, making the financial stakes considerable.

Backlash From MAGA Base Sparks Membership Threats

The legal offensive has not sat well with supporters of Trump. Many on social media and in MAGA-aligned circles cast Costco's lawsuit as a betrayal. 'They deserve bankruptcy', read one widely shared post.

Some users claimed they cancelled or would cancel their Costco memberships. Others compared the campaign to previous conservative boycotts of brands seen as hostile to their political views.

One MAGA group statement framed the lawsuit as retribution against Trump's agenda and criticized the company's earlier stance on issues such as diversity, equity, and inclusion.

For many loyal patrons, even the long-standing iconic offerings, like Costco's £1.13 ($1.50) hot dog meal, no longer seem worth the price.

Wider Legal and Economic Stakes

Costco is not alone. Dozens of other companies have filed similar lawsuits, including manufacturers, retailers, and apparel firms, seeking to preserve their right to refunds if the SCOTUS strikes down the tariffs.

Lower courts have already handed victories to two firms. In those cases, the courts ruled the IEEPA tariffs unlawful.

But a ruling in those cases alone does not automatically entitle other importers to refunds, according to trade-law experts. Each importer must secure its own court order before the liquidation deadlines.

If SCOTUS strikes down the tariff programme, the stakes could be huge. As of late 2025, CBP had collected around £67.73 billion ($90 billion) in IEEPA-based tariffs, though some analyses estimate higher depending on final liquidation numbers.