Costco is reportedly joining a group of companies that will sue for refunds if Trump tariffs are struck down by the Supreme Court.

President Donald Trump has warned that it would be “devastating” if the Supreme Court were to strike down his administration’s tariff regime, and it will be. He went further to claim that without the tariffs he implemented, the “entire world would be in a depression,” arguing that the levies are the only thing keeping the global economy stable and fair for the U.S.

He argues that if the Court removes his authority, the U.S. loses its leverage. He cited his ability to force countries like China to drop their own trade barriers (such as curbs on rare earth minerals) purely because of his tariff threats.

Maybe he should have thought about the implications of his actions, even if it may be in the process.

Behind the scenes, the White House is preparing for a loss. If the Supreme Court rules that Trump cannot use the International Emergency Economic Powers Act (IEEPA) to impose these broad tariffs, his administration plans to pivot to other legal authorities:

Section 301 & Section 232: White House officials have indicated they would likely attempt to reimpose similar duties using different sections of the Trade Act of 1974.
The Catch: These alternative laws generally require lengthy investigations and specific findings before tariffs can be applied, unlike the emergency powers (IEEPA) Trump currently relies on. This could create a gap in enforcement or require the administration to rush new investigations.