Costco is facing a class action lawsuit from customers who are seeking refunds for the increased prices attributed to tariffs imposed during the Trump administration. This lawsuit, filed in federal court in Illinois, aims to declare that Costco should return any tariff refunds it has received, in line with a Supreme Court ruling that deemed the tariffs unconstitutional.
In a decision made on February 20, the Supreme Court concluded that President Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose the tariffs in question. This ruling has sparked legal actions from over 2,000 companies, including Costco, who are attempting to recover duties paid on imported goods. The lawsuit emphasizes that if Costco receives any refunds, it must pass them on to customers who faced higher prices due to the tariffs.
While Costco has not yet commented on the lawsuit, it did mention its intentions to return tariff refunds to consumers through reduced prices or enhanced value. The complaint also pointed out that the company has not guaranteed any specific commitments regarding refunds, only indicating potential benefits for future shoppers.
Costco’s CEO noted recently that it remains uncertain when or if businesses will receive the refunds tied to the duties paid earlier under the IEEPA. If Costco does get access to these funds, it is expected to lower prices for its customers.
In a related matter, FedEx is similarly suing for full tariff refunds and has faced its class action lawsuit involving shippers who also dealt with inflated costs because of the tariffs. FedEx promised that refunds, once issued, would be distributed back to the shippers and consumers who originally incurred these charges, although the exact process for this remains unclear.
Overall, the upcoming legal maneuvers regarding the tariff refunds reflect ongoing tensions between businesses and governmental authority over trade policies. With enterprises like Costco and FedEx at the forefront, the repercussions of the tariffs continue to unfold, impacting both businesses and consumers alike.
Recent research indicates that, as of November 2025, U.S. businesses and consumers are shouldering a significant portion of the tariff burden, with current estimates suggesting they pay about 86%, while foreign exporters cover about 14%. This data aligns with findings from the Congressional Budget Office, which suggested that American entities bear the majority of tariff costs, leaving only a small percentage to be absorbed by foreign exporters.
