A Costco customer has filed a class action lawsuit against the wholesale retailer, seeking to compel the company to refund customers who paid higher prices for imported goods due to tariffs imposed under President Donald Trump.
The lawsuit, filed in an Illinois federal court, argues that Costco should pass along to customers any refunds it receives from the government after the U.S. Supreme Court struck down the tariffs. The plaintiff, Matthew Stockov, claims he purchased electronics, food products, and household items at prices inflated by Costco's pass-through of tariff costs.
For ten months, U.S. businesses were forced to pay higher prices for imports after Trump enacted tariffs under the 1977 International Emergency Economic Powers Act (IEEPA), which was later ruled unlawful. The tariffs, which included a 10 percent global levy and country-specific duties, were intended to address trade deficits deemed a national security threat.
Costco, along with hundreds of other businesses, has asked the U.S. Court of International Trade to force the government to issue refunds for costs absorbed or passed to consumers. While some companies like FedEx have vowed to refund customers if they obtain refunds, Costco has made no such commitment, according to Stockov.
Costco CEO Ron Vachris stated on an earnings call that it is unclear when or if the company will receive a refund, but he committed to returning the value to members through lower prices and better values. The Trump administration has indicated it wants to maintain global tariffs through other means, including investigations into foreign manufacturing practices.
