Crocs, Inc. has filed a $54 million lawsuit against the Trump administration, arguing that emergency tariffs imposed earlier this year were unlawful and have already cost the company hundreds of millions of dollars in recent quarters.
The Colorado-based footwear maker filed the suit Friday in the U.S. Court of International Trade in New York City, according to the Denver Business Journal. The complaint names multiple federal agencies, including U.S. Customs and Border Protection, the U.S. Department of the Treasury, the U.S. Department of Homeland Security, and the Office of the U.S. Trade Representative.
Several Trump administration officials are also listed in the suit, including Homeland Security Secretary Kristi Noem, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick. Crocs is seeking a refund of $54 million in tariff payments it says were improperly collected.
At the center of the lawsuit are emergency tariffs ordered in April by President Donald Trump. Crocs argues that the law cited by the administration does not give the president authority to impose tariffs and that the declared national emergency was “not a genuine emergency” and did not involve an “unusual or extraordinary threat,” according to the filing.
The company says it has already paid $54 million in duties and is seeking reimbursement with interest. The lawsuit also asks the court to shield Crocs from future tariffs if the Supreme Court ultimately rules that the emergency measures were illegal.
According to the Denver Business Journal, the tariffs have taken a significant financial toll. Crocs claims the policy has contributed to hundreds of millions of dollars in losses across the last two consecutive quarters, marking a sharp reversal after years of consistent profitability.
Crocs has been reducing its reliance on Chinese manufacturing since 2019, gradually shifting production to other countries. The company has previously warned that sustained high tariffs could force it to fully relocate its supply chain away from China, a move that would carry additional costs and logistical challenges.
The lawsuit places Crocs among a growing list of major corporations pushing back against Trump-era trade policies. Other companies, including Costco, Revlon, and Kawasaki Motors, have filed similar legal challenges contesting the legality of emergency tariffs.
While the Trump administration has defended the measures as necessary to protect national interests, critics argue the tariffs function as an overreach of executive authority and place an unfair burden on American companies and consumers.
The case now heads to the U.S. Court of International Trade, where judges will weigh whether the administration’s use of emergency powers to impose tariffs exceeded its legal limits. For Crocs, the outcome could determine not only whether it recovers tens of millions of dollars, but also how it plans its manufacturing and pricing strategy going forward.
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