Emery | Reddy is representing Costco members in a newly filed federal class‑action lawsuit seeking to ensure tariff refunds are returned to the people who paid them: Costco customers.
The lawsuit follows a landmark U.S. Supreme Court decision earlier this year that invalidated certain tariffs imposed during the Trump administration. While major retailers like Costco are now entitled to receive refunds from the federal government, the lawsuit alleges that Costco has not committed to passing those funds back to the members who bore the cost of the tariffs at checkout.
Between February 1 and February 24, 2025, Costco sold products subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Like many retailers facing increased import duties, Costco raised prices on tariff‑affected goods which were ultimately paid by consumers.
In February 2026, the U.S. Supreme Court ruled that the president did not have authority under IEEPA to impose those tariffs, holding that taxing power belongs to Congress. As a result, companies that paid the duties are now eligible for refunds from the federal government.
Seven Costco members, four of them Washington residents, are serving as named plaintiffs in the proposed nationwide class action.
The case asks the court to require Costco to return tariff-related overcharges to customers rather than retaining those funds as corporate revenue. Attorneys argue that allowing Costco to keep both the higher prices charged to consumers and the government tariff refunds would amount to an unfair windfall.
Costco has acknowledged the possibility of tariff refunds but has not made a clear commitment to reimbursing customers.
During a March earnings call, Costco CEO Ron Vachris stated that the company would aim to return value to members “through lower prices and better values” and said Costco would be transparent about any refund plans if refunds are received. At the same time, the company has indicated that tariffs were not always passed through fully and that tracking impacts on individual products is complex.
As of the filing of the lawsuit, Costco has not announced a policy guaranteeing direct refunds to customers who paid tariff‑inflated prices.
Federal agencies are currently developing systems to process tariff refund claims following the Supreme Court’s ruling. According to public reporting, Customs and Border Protection expects to refund more than $130 billion to importers nationwide.
The plaintiffs’ lawsuit alleges that absent court intervention, consumers may never see the portion of that money that came directly from their pockets.
This lawsuit raises an important accountability question: When unlawful costs are passed on to customers, who is entitled to the refund?
For millions of Costco members, and consumers across the country, the answer could establish an important precedent for how retailers handle refunds tied to unlawful fees, tariffs, or surcharges in the future.
The Seattle Times provided detailed reporting on the filing of this lawsuit and the broader context surrounding tariff refunds. You can read their coverage here. If you believe you were affected by tariff‑related price increases or have questions about consumer rights, our firm is here to help.
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