Costco Faces Class-Action Suit Over Tariff Refunds After Supreme Court Reversals

Seven Costco members filed a class-action lawsuit seeking refunds for tariffs passed on to customers.

“A group of customers has joined forces to file a joint lawsuit against Costco to seek the return of tariffs after a ruling by the United States Supreme Court that deemed them illegal because they were approved under the 1977 Emergency Powers Act, a rule not intended for these issues”

EL PAÍS

The plaintiffs argue Costco would make windfall profits by retaining tariff refunds.

EL PAÍS

The lawsuit covers purchases from Feb. 1, 2025 through Feb. 24 and seeks restitution of tariff overcharges.

Trump's tariffs raised federal revenue by more than 300%, delivering a $215 billion windfall.

The Supreme Court ruled Trump lacked authority to impose broad tariffs under the Emergency Powers Act.

The Court struck down tariff programs that accounted for 88% of the $215.2 billion collected in fiscal 2025.

Fox Business

The ruling ignited debate over who bears the cost of tariffs.

The government is working on a plan to refund roughly $166 billion but details remain unclear.

“A proposed class-action lawsuit against Costco is seeking to secure refunds for customers who helped pay tariffs on imported products”

The Seattle Times

Treasury Secretary Yellen initially insisted retail chains should absorb refunds.

The Treasury has issued guidance directing refunds to importers first, triggering lawsuits.

Tariffs function as a tax on imports that businesses often pass along to consumers.

Households and businesses may face increased costs for electronics, raw materials, and other goods.

Fox Business

The Supreme Court ruling will have a direct financial impact on millions of Americans.