Is Costco Going To Pass On Tariff Refunds To Customers? Here's What We Know

The average U.S. tariff on imports rose to 13% in 2025, allowing the government to collect $259 billion in tariff revenue. Meanwhile, almost 90% of the increased tariff's financial burden fell on U.S. companies — including North American automakers such as Ford and GM — and their customers. When the tariff increase was ruled unconstitutional in 2026, it was estimated that the government could owe as much as $168 billion in refunds to various businesses across the country. Thousands of companies across the United States have been demanding money from the federal government since then, including Costco.

Costco is one of the companies that has sued the federal government in hopes of reclaiming the money it spent on those extra import fees. In a May 2026 earnings call, Chief Executive Ron Vachris said that the retailer's plan "is to return to our members in some form the portion of tariffs that were passed on to them" (via Financial Post). As of August 2026, it has received about one-third of the money owed. However, a filing (via CFO Dive) from the same month suggests that Costco will only be returning that tariff money to customers by lowering the cost of some products instead of offering direct refunds.

Costco customers hoping to get some of that tariff money back now that the company is starting to see some of the refund may need to temper expectations — at least for now. At the time of writing, Costco is embroiled in a lawsuit filed by an Illinois customer who believes the lowered product pricing isn't enough. 

Matthew Stockov originally rejected Costco's plan to refund customers by lowering pricing, claiming this wouldn't fully make up for the previously higher prices. Costco dismissed the case in May, citing that it had not received any tariff refunds. This changed in August 2026 when it received some of the money, resulting in Stockov's attorneys going on the offensive once again, claiming that the retailer no longer had any excuses. Costco's defense is that nobody was forced to buy its products in 2025.  Either way, it's worth noting that Costco saw increased earnings in 2025, with net sales up 8.1%.

The lawsuit is still ongoing, making Costco one of a few companies facing similar lawsuits from customers demanding money back. It's not the only company refunding customers by lowering prices, as Walmart has announced plans to do the same.