Costco Faces Lawsuit Over Refunds for Invalid Trump-Era Tariffs

A class-action lawsuit seeks to recoup tariff costs paid by Costco customers, despite the company's plans to return refunds to members.

Mar. 13, 2026 at 6:34am

Got story updates? Submit your updates here. ›

A member has filed a class-action lawsuit against Costco, seeking refunds for tariff costs passed on to consumers during the Trump administration's trade policies. The lawsuit argues that while Costco and other companies paid the tariffs, only the importers can legally recoup the refunds, leaving consumers without a direct path to recover their costs. The complaint also alleges that Costco profited by raising prices on tariffed goods.

Why it matters

The lawsuit highlights the complex legal landscape around refunding invalid tariffs imposed under the Trump administration's trade policies. While the Supreme Court ruled that the president overstepped his authority, the law only grants refunds to the companies that paid the tariffs, not the consumers who ultimately bore the costs.

The details

The lawsuit was filed by an Illinois man seeking to represent a class of Costco customers who paid higher prices due to the tariffs. The complaint argues that Costco, as a "pass-through vehicle" for the tariffs, was able to expand profit margins by selectively raising prices on tariffed goods. Costco has previously stated it plans to return any tariff refunds to its members through lower prices.

  • In February 2026, the Supreme Court ruled that President Trump overstepped his authority in imposing the tariffs under the International Emergency Economic Powers Act.
  • In December 2025, Costco filed its own lawsuit seeking a full refund of tariffs paid to the federal government.

The players

George Zelcs

A Chicago attorney representing the plaintiff in the class-action lawsuit against Costco.

Ron Vachris

The CEO of Costco, who has stated the company will return any tariff refunds to its members through lower prices.

Costco

The world's third-largest retailer, which is facing a lawsuit from a member seeking refunds for tariff costs passed on to consumers.

Got photos? Submit your photos here. ›

What they’re saying

“Only the importer of record has standing to seek a refund, regardless of who ultimately paid. Large corporations, even those who passed 100% (or more) of the tariff burden onto customers, remain fully empowered to recover a complete refund for any unlawful tariffs they paid.”

— George Zelcs, Attorney (dailyfly.com)

“Our commitment will be to find the best way to return this value to our members through lower prices and better values, if the company gets tariff refunds.”

— Ron Vachris, CEO (dailyfly.com)

What’s next

The judge will determine whether the class-action lawsuit against Costco can proceed and if the company will be required to refund tariff costs to its customers.

The takeaway

This case highlights the complex legal and financial implications of refunding invalid tariffs, with consumers potentially unable to directly recoup costs they paid despite the tariffs being ruled unlawful. It underscores the need for clearer policies to protect consumers when trade policies are overturned.