Costco sued by shopper in potential tariff class action case

A Costco shopper in Illinois has sued the retail giant in an attempt to secure refunds for U.S. customers after the Supreme Court struck down the bulk of President Trump’s sweeping tariffs last month.

The proposed class action lawsuit seeks to prevent what is described as “double recovery” by Costco, arguing that the corporation should be required to return any money it collects from tariff refunds to consumers because those costs were initially passed on through product prices.

“Costco has made no commitment to return any portion of anticipated tariff refunds to the consumers who bore those costs,” attorneys wrote.

Costco did not immediately respond to The Hill’s request for comment.

Costco CEO Ron Vachris said on a post-earnings call last week that the company could lower prices and boost value for customers if refunds come through, but he added that it is unclear when or whether that will occur, according to Reuters.  

Attorneys dismissed those comments in the lawsuit as “a promise of possible future benefit to an indeterminate group of future shoppers,” not a “commitment” to those who paid higher prices to begin with.

Costco, a Washington state-based company, is among a slew of companies, including FedEx, that have sought to recover duties it paid over the past year from the Trump administration after the Supreme Court found the cornerstone of Trump’s economic agenda was unconstitutional.

The court found in a 6-3 decision on Feb. 20 that the president’s expanded use of the International Emergency Economic Powers Act (IEEPA) exceeded his authority but offered no guidance as to what should happen with the estimated hundreds of billions of dollars that had already been collected.  

That issue has been playing out in the International Court of Trade, where a judge ordered Customs and Border Protection (CBP) –– which collects tariffs and duties on goods entering the country –– to start the process.

On Monday, the judge granted CBP an extension after the agency indicated it needed at least 45 days to set up an automated system.