Costco Wholesale Corp. (NASDAQ:COST) has become the subject of a proposed nationwide class-action lawsuit demanding refunds for customers who were charged higher prices before the Supreme Court nullified tariffs imposed by the Trump administration.
The lawsuit was filed Tuesday in a federal court in Illinois by Costco shopper Matthew Stockov, individually and on behalf of other similarly situated shoppers. The plaintiff is seeking a declaration that the company must return to customers any refunds it receives for tariffs it paid under the International Emergency Economic Powers Act (IEEPA).
The complaint alleges the lawsuit aims to stop Costco from receiving a double recovery and notes the retailer has not committed to returning any tariff refunds to consumers who ultimately paid those costs.
Costco CEO Ron Vachris said in an analyst call last week that it is still unclear whether or when businesses will be refunded the tariffs they previously paid under the IEEPA. If the retailer does receive refunds, he added, Costco plans to use the funds to lower prices and enhance value for customers.
CBP Plans System For Tariff Refunds
In December, Costco filed a lawsuit against the Trump administration, demanding a refund of tariffs even before the Supreme Court ruled that President Donald Trump‘s IEEPA tariffs were illegal. Following the apex court’s decision in February, FedEx Corp. (NYSE:FDX) filed a similar lawsuit against the U.S. government, seeking to recover tariffs.
Earlier this month, the U.S. Court of International Trade in New York City ordered the government to refund potentially billions in unlawfully collected tariffs to importers, after a lawsuit by Atmus Filtration Technologies Inc. (NYSE:ATMUS). Judge Richard Eaton said the company had paid about $11 million in illegal tariffs.
In response, Brandon Lord of U.S. Customs and Border Protection (CBP) told the trade court that the agency is developing a new system to streamline tariff refunds. The system is expected to be ready within 45 days and will require minimal input from importers.
Brandon Lord said that as of March 4, more than 330,000 importers made over 53 million entries with U.S. Customs and Border Protection, paying about $166 billion in tariffs that now need to be refunded.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
Photo courtesy: Dolores M. Harvey via Shutterstock
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