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Costco sues Trump administration for ‘full refund’ of tariffs

By Eric December 2, 2025

In a significant legal development, two lower courts have ruled against former President Donald Trump’s controversial use of emergency powers to impose tariffs on various imports. This judicial scrutiny centers on Trump’s 2018 decision to levy tariffs on steel and aluminum imports, which he justified by claiming a national security threat posed by foreign metals. The rulings from these courts raise critical questions about the scope of executive power and the legal boundaries of trade policy in the United States.

The first ruling came from a federal district court in 2020, which found that the tariffs were improperly enacted under the International Emergency Economic Powers Act (IEEPA). The court determined that the president did not adequately demonstrate that the importation of metals posed a genuine threat to national security, thereby undermining the legal basis for such emergency powers. A subsequent ruling from a federal appeals court echoed this sentiment, emphasizing that the tariffs exceeded the authority granted to the executive branch. These decisions are pivotal as they not only challenge the legality of Trump’s tariffs but also set a precedent regarding the limits of presidential power in economic matters.

The implications of these rulings extend beyond the Trump administration, potentially influencing how future administrations approach trade and emergency powers. Critics argue that the misuse of emergency powers for economic purposes could lead to significant market disruptions and strained international relations. For example, the tariffs led to retaliatory measures from allies like Canada and the European Union, resulting in a trade war that impacted various sectors, including agriculture and manufacturing. As this legal battle unfolds, it underscores the importance of checks and balances in government, particularly concerning trade policies that can have far-reaching consequences for the U.S. economy and its global standing. The outcomes of these cases may not only affect past policies but also shape the future landscape of American trade and executive authority.

https://www.youtube.com/watch?v=Au0K6Yk6gj0

Two lower courts have already ruled against President Trump’s use of emergency powers to impose tariffs.

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