Costco Sues U.S. Government, Demanding "Full Refund of Tariffs" ─ "Price Increases Are the Last Resort, Price Reductions Are the First" The Ultimate Expression of Costco's Customer-First Principle Leads to a "Lawsuit Against the Government"

Costco Sues U.S. Government, Demanding "Full Refund of Tariffs" ─ "Price Increases Are the Last Resort, Price Reductions Are the First" The Ultimate Expression of Costco's Customer-First Principle Leads to a "Lawsuit Against the Government"

2025年12月04日 10:05

1. The Day Costco Sued the U.S. Government

On November 28, 2025, Costco, which operates membership-based warehouse stores worldwide, filed a lawsuit against the U.S. government and the Trump administration. The venue was the U.S. Court of International Trade in Manhattan, New York.


The issue at hand is both simple and significant.

"Are the import tariffs imposed by the Trump administration under the pretext of an 'emergency' illegal? If they are, we want a full refund of what Costco has paid."

Costco is seeking a "full refund" of the import tariffs it paid under a series of "emergency tariffs" introduced in 2025.Investopedia


This news quickly spread across financial media and social networks with straightforward headlines like "Costco Sues U.S. Government" and "Big Business Rebelling Against Trump Tariffs."


2. What Tariffs Are at Issue?

The key to this lawsuit lies in the International Emergency Economic Powers Act (IEEPA), a law from 1977.


Originally, IEEPA was used as a tool to freeze assets and impose sanctions in response to "national security emergencies" such as

  • state sponsors of terrorism

  • money laundering

  • security threats

.mexicobusiness.news


However, in 2025, the Trump administration declared that

"the massive U.S. trade deficit is a 'national emergency'"

and introduced a policy adding a flat 10% "emergency tariff" on almost all imports based on IEEPA. This includes so-called "reciprocal tariffs" and "trafficking (fentanyl) tariffs" targeting imports from China.mexicobusiness.news


However, this has led to a significant legal issue.

  • IEEPA grants the authority to "regulate imports"

  • but does not explicitly state the authority to "impose tariffs (taxes)."

  • Tariffs and taxes are the authority ofCongress (the legislative branch), so can the President decide this unilaterally?


Lower courts (the Court of International Trade and the Federal Circuit Court of Appeals) have already ruled these emergency tariffs as "an unauthorized use of the law and illegal." The Federal Circuit Court of Appeals upheld the illegality by a vote of 7 to 4.mexicobusiness.news


The issue is now before the Supreme Court, where oral arguments were already held in November 2025. Reports suggest that several justices expressed skepticism, questioning whether the President's powers have expanded too much, indicating that Trump's tariff policies might face significant limitations.Investopedia


3. The Urgent Reason Costco Sued "Now"

So why did Costco decide to file a lawsuit at this timing? The key point is the U.S. customs rule that "refunds cannot be claimed once the time limit expires."


  • An "entry" is created for each imported item, and after a certain period, it is "liquidated" (finalized).

  • Once an entry is liquidated, the right to reclaim overpaid tariffs may be lost even if the tariffs are later deemed illegal.

Costco emphasizes in its lawsuit that

"many import entries will reach their liquidation deadline around December 15, closing the path for refund claims."

This is a crucial point.mexicobusiness.news


Therefore, it seems Costco filed the lawsuit preemptively to "secure the right to a refund in case the Supreme Court rules the tariffs illegal."


In the complaint, Costco seeks

  • confirmation of the invalidity of the emergency tariffs

  • an injunction against further collection of additional tariffs

  • a guarantee of a full refund of tariffs already paid and those that may be paid until the ruling

among other things.Investopedia


Similar lawsuits have already been joined by companies likeKawasaki, Bumble Bee Foods, Revlon, and Yokohama Rubber, making the "tariff refund front" more than just a single company's issue.mexicobusiness.news


4. How Much Money Is Involved?

Neither Costco nor the U.S. government has disclosed specific amounts. However, the scale can be inferred from published statistics and earnings comments.

  • The amount collected by U.S. Customs and Border Protection as emergency tariffs based on IEEPA is
    → approximately $88 billion (about ¥13 trillion) by September 2025
    → estimated to grow to $2.3 trillion (about ¥340 trillion) over the next decade.The Washington Post

  • In Costco's case
    → about one-third of U.S. sales are imports
    → approximately 8% of which are from ChinaThe Washington Post


Considering these factors, the additional tariffs paid by Costco could potentially be in the order ofhundreds of millions to billions of dollars. If the Supreme Court rules the emergency tariffs illegal and Costco wins as a company that "secured the right to a refund," a substantial amount of cash could return to Costco.


From an investor's perspective,

  • tariff refunds = a factor boosting EPS (earnings per share)

  • and could potentially become a source for special dividends or share buybacks.

It's natural to associate these possibilities. In fact, some financial media outlets are introducing the view that "if tariff refunds are realized, there will be more room for shareholder returns."

Investopedia


5. "Price Increases Last, Price Cuts First": Costco's Dilemma

Costco is characterized by its "customer-first" approach, which is not just lip service but is embodied in its pricing policy.


According to CFO comments and earnings explanations, even after the introduction of emergency tariffs, Costco has

  • raised prices on discretionary items like flowers

  • while keeping prices as stable as possible on essential items

    like fruits and fresh foods.

Costco has tried to protect member prices by sacrificing profit margins.

The Washington Post


CEO Ron Vachris has also repeatedly emphasized,

"Even if we have to raise prices, we'll be the last in the market to do so, and the first to lower them when possible."

The Washington Post


In this sense, the lawsuit can be seen as

"having kept price increases to a minimum, if the tariffs are legally unjust, we want them properly refunded."

This can be viewed as Costco's way of standing its ground to protect consumers.


6. Reactions on Social Media: "Righteous Lawsuit" or "Corporate Whim"?

This news quickly spread to X (formerly Twitter) and financial social networks.

 


6-1. Reactions from the Financial Cluster

The financial account "unusual_whales," known for options and flow information, posted that "Costco (ticker: $COST) is suing the Trump administration for a full refund of the new tariffs paid," sparking widespread discussion among individual investors.X (formerly Twitter)

The timeline was filled with posts like,

  • "If they win, won't this be an enormous special profit?"

  • "I've calculated how tariff refunds will affect cash positions and shareholder returns."

Many posts focused on "number games," viewing the tariff lawsuit as astock price event.


6-2. Perspectives of Journalists and Economists

Among economic journalists and TV reporters,

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