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Costco Seeks Tariff Refunds, Pledges Any Payouts Will Cut Member Prices

Costco outlines price relief contingent on court-approved tariff refunds.

Overview

  • CEO Ron Vachris said any recovered duties will be returned to members through lower prices and better values.
  • He cautioned the process, amounts, and timing of refunds remain unclear as courts sort out claims, even after a trade court judge ordered the government to start paying some refunds.
  • Costco is pursuing refunds in the U.S. Court of International Trade alongside companies including Walmart, FedEx, Staples, and L'Oréal.
  • To limit price pressure from the tariffs, Costco shifted some sourcing, consolidated global purchases, and leaned on its Kirkland Signature brand while avoiding passing the full costs to shoppers.
  • The wholesaler reported second-quarter results that slightly beat expectations, with $69.6 billion in revenue and earnings of $4.58 per share.