Costco Says It Will Pass on Tariff Refunds to Customers

The push and pull over Trump’s tariffs has been consistently bad news for customers. When they were first announced last year, the news resulted in an almost-immediate increase in prices across groceries, as some supermarkets and companies passed the additional financial burden onto consumers. The Supreme Court’s decision to ultimately block the tariffs naturally didn’t result in the people who paid the price getting their money back, and the continuing uncertainty around what will happen next has kept businesses on the cautious side.

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Now, though, Costco’s taking a stand. In a recent earnings call, reported on by the Puget Sound Business Journal, CEO Ron Vachris announced that it will be passing on any tariff refunds it receives directly to its customers. Here’s what we know.

Costco’s Tariff Refunds

Vachris’ commitment to pass on tariff refunds comes amidst ongoing legal action that the grocery store has taken against the Trump administration. In November 2025, it claimed that any tariffs collected under the International Emergency Economic Powers Act (IEEPA) were unlawful, with Costco’s lawyer stating that “because IEEPA does not clearly authorize the President to set tariffs … the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them.” Costco also argued that it was owed any interest accrued on tariff payments.

Following February’s Supreme Court ruling, Vachris stated in the earnings call that should they get any refunds back, they’ll make their way to the people who shop in his stores. “As we have done in the past, when legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value through lower prices,” he stated. “We will be transparent in how we plan to do this if and when we receive any refunds.”

Costco’s Price-Lowering Is Already in Action

While there’s no word yet on exactly what form these refunds will take on its groceries (if, indeed, Costco receives them at all), they could well come as price adjustments, or else Costco could make the case that price reductions constitute a form of refund. The store has already started to drop its prices in response to the Supreme Court ruling and the subsequent tariff action taken beyond that. In the earnings call, Vachris pointed out that the price of items like eggs, coffee, and textiles has now been lowered following the tariff changes. Elsewhere, it’s been busy trying to offer discounts in other ways, including through a partnership that gives access to lower-cost fertility treatments.

Costco isn’t the only company to sue the Trump administration over tariffs, either. Eyeglass makers have been somewhat surprisingly strident in their pushback, with Ray-Ban and EssilorLuxottica both filing lawsuits seeking tariff refunds. Who knew they had such skin in the game, huh?