"Costco Wholesale has won the loyalty and almost religious devotion of tens of millions of members thanks to one tenet in how it has run its business since its founding decades ago. Everything it does is aimed at keeping costs low so it can offer shoppers the deals on top merchandise that keep them coming back in droves week after week."
"In its filing last December with the U.S. Court of International Trade, Costco said its lawsuit was intended to ensure it was eligible for a full refund if the Supreme Court rejected the administration's rationale for tariffs collected under the International Emergency Economic Powers Act. The suit made headlines that have only strengthened Costco's reputation for looking out for its customers."
"Costco has never said how much in duties it has paid, but the retailer has said about one-third of its products sold in the U.S. are imported-so it is likely to be no small sum. (One estimate, calculated by Penn Wharton Budget Model economists calculated for , is that more than $175 billion in U.S. tariff collections in all might have to be refunded.)"
Costco built customer loyalty by prioritizing low operating costs to offer discounted top merchandise. Last autumn Costco sued the Trump administration over its "Liberation Day" tariffs, seeking to preserve eligibility for full refunds if the tariffs were invalidated under the International Emergency Economic Powers Act. The U.S. Supreme Court ruled the tariffs unconstitutional. The ruling left the refund process unresolved. Costco reports about one-third of its U.S. products are imported, implying potentially substantial duty exposure. One estimate suggests more than $175 billion in U.S. tariff collections could be affected, and Justice Kavanaugh warned refunds "is likely to be a mess."
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