An Illinois-based Costco shopper is suing the big-box retailer for tariff refunds in a possible class-action case after President Trump’s core import taxes were overruled last month.
Matthew Stockov, a Costco member, bought food, electronics, household items, small appliances and hygiene products from Costco that were imported from other countries and sold at “inflated” prices to offset the tariffs, according to his suit filed Wednesday in Illinois federal court.
The lawsuit alleged Costco owes refunds, plus interest, to customers nationwide after the Supreme Court last month deemed Trump’s IEEPA tariffs – taxes placed on many foreign nations under the International Emergency Economic Powers Act – illegal.
“While the importer of record is the only party that may recover a refund from the government for an improperly assessed tariff, the importer is often nothing more than a pass-through vehicle,” the complaint said.
“The consumer, for all intents and purposes, pays the tariff. And yet, even when the Supreme Court strikes down an unlawful tariff, the truly injured parties possess no direct avenue for redress.”
Costco did not immediately respond to The Post’s request for comment.
The wholesale retailer – which is among the hundreds of companies that last year sued the federal government for tariff refunds – has not promised any payback to customers.
During an earnings call last week, Costco CEO Ron Vachris said the company will instead “return this value to our members through lower prices and better values” if the company is awarded a tariff refund.
The lawsuit claimed this commitment was insufficient, arguing that a promise for possible value to an indeterminate group of future shoppers is not the same as a refund to past shoppers who were charged tariff-adjusted prices.
While the Supreme Court last month ruled that Trump’s IEEPA tariffs exceeded his presidential authority, it did not specify or mandate a path for refunds to importers, businesses or customers.
The Court of International Trade has since ordered the federal government to return roughly $166 billion in tariff revenue, though it is unclear when or how the refunds will be issued.
A group of Democratic senators including Elizabeth Warren of Massachusetts and Cory Booker of New Jersey last month pressed the Trump administration for a clear plan for tariff refunds.
While consumers are not expected to see tariff moolah, customers have sued several other companies for potential refunds, including from FedEx, United Parcel Service and eyeglass maker EssilorLuxottica.
Some of the firms – including FedEx – slapped specific tariff surcharges on their goods and services last year, so there’s a clearer potential path for issuing refunds.
“If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges,” the shipping company said in a statement soon after the Supreme Court ruling tossed out the tariffs.
On the other hand, Costco and most other retailers have said they did not fully pass along the tariff costs on all items, raising prices here and there, instead – which makes it more difficult to track how much customers would be owed in refunds.
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