As a US Supreme Court ruling on Donald Trump’s “Liberation Day” tariffs looms, US companies are queuing to be in line for refunds should the court rule against them.

Costco is probably the biggest of the companies to sue the administration in the US Court of International Trade, where it joined about 90 others, including Revlon, Kawasaki, EssilorLuxottica and auto parts and food importers earlier this month, seeking to position themselves for refunds of the tariffs they’ve paid should the court rule against the administration.

US President Donald Trump (left) and US Treasury Secretary Scott Bessent. Credit: Bloomberg

A decision in the case, an appeal against several lower court rulings that deemed the “reciprocal” and baseline tariffs illegal, is expected if not by the end of this year, then early next year.

The reason Costco and others have taken court action is that there is no certainty about what would happen to the revenue already raised should the court decide the tariffs are illegal.

Costco had asked the Customs and Border Protection agency that collects the tariffs when goods enter the US for an extension of the schedule for finalising tariff determinations until the case was decided. It had until December 15 to file its actions because that is the date on which Customs and Border Protection will “liquidate”, or finalise, its tariff obligations.

Other companies have eschewed the legal process, instead petitioning the Supreme Court directly, as “friends of the court”, to order refunds while others, not prepared or able to fund litigation, or take the risk of an adverse judgment, have been selling their potential rights to refunds to hedge funds and distressed debt funds for 20 to 30 cents in the dollar.

Costco’s action is significant because it is the 12th largest company by revenue in the US........

© The Sydney Morning Herald