A customer in the United States has filed a lawsuit against Costco, arguing that the retailer should return money to shoppers if it later receives refunds tied to import tariffs that were already reflected in higher prices.
In a proposed class action complaint, customer Matthew Sockov claims the company could effectively recover the same tariff costs twice. According to the filing, the retailer may collect the money once through higher prices paid by customers and then again through potential reimbursements from the government.
Sockov argues that such a scenario would amount to “unjust enrichment” and is asking the court to require the company to refund shoppers who paid inflated prices because of the tariffs.
The lawsuit also highlights the broader complications surrounding the estimated $166 billion in tariff refunds the U.S. government may owe companies after the Supreme Court of the United States struck down several tariffs imposed during the presidency of Donald Trump last month.
Following the ruling, responsibility for overseeing the refund process shifted to the United States Court of International Trade, which has instructed the government to begin returning the funds. Exactly when those payments might reach companies, however, remains unclear.
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The situation is further complicated by the way tariffs are typically absorbed across the supply chain. Importers initially pay the duties when goods enter the country, but businesses often pass at least part of those costs along to distributors and consumers through higher prices.
As a result, the question of who should ultimately benefit from any refunds is still unresolved.
The complaint filed by Sockov in federal court in Illinois also cites analysis from Goldman Sachs, which estimated that consumers were “shouldering two-thirds of President Trump’s new tariff costs.” The filing argues that although shoppers ultimately paid much of the added expense through higher prices, they have little direct recourse.
“The truly injured parties possess no direct avenue for redress,” Sockov stated in the complaint.
Costco is among thousands of companies seeking tariff refunds from the U.S. government, but the retailer did not respond to a request for comment on the lawsuit.
Speaking to analysts after the company reported earnings earlier this month, chief executive Ron Vachris said it remains uncertain “what refunds, if any, will be received.” He also noted that the company did not always pass along the “full cost” of the duties to shoppers.
“As we have done in the past, when legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members through lower prices and better values,” he said. “We will be transparent in how we plan to do this if and when we receive any refunds.”
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The issue raised in the lawsuit is not unique to Costco. Other companies that paid or processed the tariffs are also weighing how any potential refunds should be handled if the government begins returning the funds.
Delivery giant FedEx, which often handled tariff payments on behalf of businesses and individual importers, has said it plans to return any refunds it receives to the customers who originally paid those charges.
Meanwhile, the administration of Donald Trump told the United States Court of International Trade last week that it needs 45 days to build a new electronic system to process the refunds. Officials warned that the government’s existing systems could be overwhelmed if payments were issued immediately.
According to the filing, more than 330,000 importers could qualify for refunds after the court invalidated tariffs imposed on dozens of countries under the International Emergency Economic Powers Act.