Costco Tariff Refund Lawsuit
Costco tariff refund lawsuit follows the Supreme Court invalidation of IEEPA tariffs and a CIT 45-day refund timetable that could pressure retail pricing.
KEY TAKEAWAYS
- Court of International Trade ordered CBP to reliquidate entries and set a 45-day refund timetable.
- An Illinois proposed nationwide class-action seeks refunds from Costco for prices raised by IEEPA tariffs.
- Costco said it would return recoveries to members through lower prices if refunds are received.
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Costco Wholesale Corp. faces a proposed nationwide class-action lawsuit in Illinois federal court seeking refunds for higher prices linked to President Trump’s tariffs. This follows the U.S. Supreme Court’s February 20, 2026, invalidation of those tariffs and a new customs refund process central to the Costco tariff refund lawsuit.
Proposed Class Action and Refund Process
An Illinois shopper filed the lawsuit to compel Costco to pass government recoveries to customers who paid inflated prices due to tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The complaint alleges Costco has not committed to returning anticipated tariff refunds to those customers. A similar consumer suit has been filed against a package carrier in Florida.
The Supreme Court ruled that the Trump administration exceeded its authority under IEEPA for the 2025 tariffs. On March 11, 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (CBP) to liquidate unprocessed entries and reliquidate processed ones without the invalidated tariffs. CBP aims to establish a refund process within 45 days, with the court requesting a progress report by March 12. More than 2,000 companies, including Costco, are pursuing recoveries through this litigation.
Costco’s Response and Member Impact
Costco sued the government in late November 2025 at the Court of International Trade seeking full refunds of the IEEPA duties. On its March 12 earnings call, CEO Ron Vachris said the company would return any recoveries to members through lower prices and better values if refunds are received. He described the situation as fluid and noted that new tariffs could remain for at least 150 days.
Management said it absorbed part of the tariff burden over the past year, limited stock-keeping units (SKUs), and increased domestic sourcing to mitigate costs. The company has begun lowering prices on categories such as textiles, bedding, and cookware where duties were reduced. These actions set expectations for Costco member refunds.
The court’s order and CBP’s timetable create a near-term mechanism to return money to importers. This will pressure retailers to reconcile government recoveries with refunds for customers who paid higher prices, testing how broadly companies convert Court of International Trade recoveries into lower prices for shoppers.
