Costco Sued Over Trump Tariff Refunds

Costco Wholesale Corp. was sued on Wednesday, March 11, in a proposed nationwide class action in U.S. federal court in Illinois, seeking customer refunds for higher prices charged due to tariffs imposed by former President Donald Trump. The lawsuit, filed by a Costco shopper, demands that the company return to customers any refunds it receives for tariffs paid under the International Emergency Economic Powers Act (IEEPA).

This legal action follows a U.S. Supreme Court ruling on February 20, which determined that Trump exceeded his authority by using emergency powers to impose tariffs. This decision has initiated extensive litigation in the U.S. Court of International Trade, where Costco is among over 2,000 companies suing the administration to recover duties paid. Global shipper FedEx faces a similar consumer class action in Florida federal court.

The complaint alleges that Costco has not committed to returning anticipated tariff refunds to consumers who bore the costs, despite the company's CEO, Ron Vachris, stating last week that any refunds would be channeled into lower prices and improved value for future shoppers. The lawsuit argues this promise constitutes only a "possible future benefit to an indeterminate group of future shoppers."