Will Costco Share Tariff Refunds With Shoppers? Here's What We Know

Costco has found itself at the center of the battle over tariff refunds. In addition to suing the Trump administration late last year in an attempt to recoup duties it paid due to the president's economic policy, Costco itself is facing lawsuits from shoppers seeking a cut of any money it gets back.

Executives at the warehouse club say Costco remains focused on offering competitive prices, suggesting recently that the now-invalidated tariff costs it incurred in 2025 — and passed on to customers — could be returned to them in the form of lower prices on everyday items going forward.

Shoppers aren't exactly buying it.

After the Supreme Court struck down the Trump administration's International Emergency Economic Powers Act (IEEPA) tariffs in February, a trade court judge ordered the federal government to develop a system for refunds. On Monday, the government's portal — known as the "CAPE" system — officially opened for Phase 1.

Costco is expected to pursue millions of dollars in tariff refunds, along with thousands of other companies that import products and materials they use and sell. The retailer has not disclosed its IEEPA costs, though it stated last year that about a third of its sales were imported items.

On a March 5 earnings call, Costco CEO Ron Vachris volunteered brief comments on tariff refunds, acknowledging that the broader issue is of "great interest" to Costco's 82 million members.

"The future impact of tariffs remains extremely fluid, as the recently eliminated IEEPA tariffs have now been replaced with new global tariffs for at least the next 150 days," Vachris said. "Our buyers continue to act with great agility and urgency, always with the goal of reducing the impact of tariffs on prices for our members."

The company previously acknowledged that tariffs were driving up prices for certain items — like flowers from South and Central America — despite efforts to keep items on its shelves affordable. As tariffs threatened Costco's margins, the company "didn't pass the full cost on to our members," Vachris stressed.

He said Costco's strategies to soften the blow of tariffs include shifting countries for production and "leaning in" on its in-house brand, Kirkland Signature.

Costco officials are not yet committing to any direct refunds to customers — nor is any other retailer, for that matter. (So far, only shipping companies like FedEx and UPS are committing to givebacks if tariff refunds are processed.)

Costco did not respond to Money's request for comment.

Will Costco give refunds for tariffs paid?

In a March 11 lawsuit, Illinois resident and Costco member Matthew Stockov moved to stop Costco "from double recovery" — charging higher prices to consumers while holding onto the tariff refunds from the government. The lawsuit demands that Costco pay back "any IEEPA tariff costs passed through to customers."

On the earnings call, Vachris said the refund process is still clouded with uncertainty: "Regarding IEEPA tariff refunds, it is not yet clear what the process will be, what refunds, if any, will be received, and when this will happen," Vachris said.

Historically, he said, Costco has shared recoveries from legal challenges with members when prices increase, and the company remains committed to doing that.

"Our commitment will be to find the best way to return this value to our members through lower prices and better values. We will be transparent in how we plan to do this," Vachris added.

The complaint from Stockov called this statement insufficient, noting that it "is not a commitment to compensate the specific individuals who paid elevated prices." Instead, "it is a promise of possible future benefit to an indeterminate group of future shoppers," the lawsuit reads.

Another shopper-led class-action lawsuit filed against Costco on March 27 objected to the same Vachris remark.

"That promise merely shifts the benefit of those refunds to future shoppers while Costco retains the gains generated by the unlawful tariffs, at the expense of the specific consumers who paid the inflated prices," it reads.

To be clear, this isn't a Costco-only issue. Other retailers seeking tariff refunds from the Trump administration are all but certain to face this same critique — that price relief now doesn't help people who bore the costs last year and/or no longer shop at that store.

Costco has not said which items may see price cuts if the company is refunded its millions. Vachris noted that Costco is lowering prices for "certain textiles, bedding and cookware SKUs" following the Supreme Court decision.

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