The tariff fight hiding in your Costco cart
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Costco is suing the federal government to protect its ability to get refunds on Trump-era tariffs it paid on imported products
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Those tariffs are already baked into prices, showing up as higher costs, fewer promos, and more Kirkland and non-tariff-country options
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If Costco wins, you wont see instant price drops, but it gives them more room to hold prices down and avoid future hikes
Costco just filed a lawsuit that most club members will never read, but the outcome could shape what you pay for a lot of stuff in your cart over the next few years.
The warehouse club is suing the federal government to protect its ability to get refunds on Trump-era tariffs it already paid on imported goods. Those tariffs, imposed using emergency powers, are now being challenged at the Supreme Court.
Heres the simple version:
- Costco has been paying extra fees (tariffs) on many imported items.
- A big Supreme Court case may decide those fees were illegal.
- Costco doesnt want to miss its chance to get that money back if possible.
If Costco wins, it wont mean instant rollbacks on every price tag, but it definitely will give them more wiggle room to keep prices low for their members.
How tariffs show up in your cart (even if you never see the word)
Tariffs are basically extra taxes on imported products. When they go up, someone has to eat that cost:
- Sometimes shoppers eat the costs in the form of higher prices.
- Sometimes Costco eats the costs in the form of smaller profit margins.
- Most of the time its actually a mix of both.
Costco leans heavily on imports (produce, appliances, coffee, cooking oils) and has admitted tariffs raised some of their costs.
To soften the blow, the warehouse club has been doing the following:
- Shifting more products into Kirkland Signature, where it controls the price and margins.
- Sourcing more from countries that arent hit by the tariffs.
- Quietly raising prices, or reducing the number of promos, in certain categories.
So even if youve never thought about tariffs, theyre already baked into the price of things like small appliances, some packaged foods, toys, clothing, and seasonal goods.
If Costco gets tariff refunds, will their prices drop?
Short answer: dont expect a Tariff Rebate Sale banner.
Costco is asking the court for a full refund of duties it has already paid under these contested tariffs. Analysts say companies across the board could be chasing as much as $90 billion in refunds if the Supreme Court says the tariffs went too far.
You probably wont see a line item that says tariff refund. But over the next couple of years, refund money makes it easier for Costco to hold prices steady instead of hiking them up every time their costs change.
Use Costcos strengths while the legal fight drags on
While courts and politicians argue, shoppers can still tap into Costcos strengths:
- Executive membership math: If youre spending enough to make the 2% reward pay for the upgrade, youre essentially getting a built-in discount on everything, tariffs or not.
- Price checks vs. Amazon and Walmart: Tariff pressure can hit all retailers, but Costcos bulk model often keeps it cheapest on per-unit pricing. Check per-ounce or per-count, not just sticker price.
- Returns on big-ticket imports: If youre on the fence about a pricey imported appliance or gadget thats gotten more expensive because of tariffs, Costcos liberal return policy is there to help. If it underperforms or you regret the splurge, their return policy makes it much easier to bring it back than at most other stores.
How to future-proof your Costco spending
No matter how the Supreme Court ends up ruling, the tariff situation this year proved that policy can change the prices you pay quickly.
With that said, its smart to consider building a little tariff protection into how you shop these days:
- Stock up smart and dont panic buy. If you see a sharp increase on a staple you use constantly, buy a bit more than usual. But be sure to stick to items that actually store, (or freeze) well.
- Make Kirkland your default, brand names your splurge. Assume Kirkland is where Costco will pass along cost relief first if tariffs get rolled back or refunds come through.
- Watch news about tariffs like you watch gas prices. Big shifts can hint that electronics, holiday goods, or certain foods may get more expensive down the road.
Posted: 2025-12-03 19:33:45















