I’ve previously written about the very different approaches to doing business by the big-box retailers, Costco and Sam’s Club. I shop at Costco rather than at Walmart’s Sam’s Club because Costco pays its workers well, provides health care coverage to its employees, and shows in a variety of ways that it values its members. I still recall a conversation at the Costco check-out when I said something to my husband to that effect, and the cashier weighed in with an emphatic agreement, saying she’d previously worked at a Sam’s Club and that there was no comparison–she was compensated, and treated, so much better at Costco.
My choice of retailers was confirmed, in my view, when Costco responded to Trump’s anti-DEI push by telling the administration, in effect, to pound sand–that they’d continue their DEI efforts.
And now, Costco has filed suit against the Trump administration, demanding repayment of the added amounts the retailer has paid due to Trump’s ridiculous tariffs. As The New Republic has reported, the company has filed a lawsuit arguing that the tariffs were illegal; that the law under which Trump justified the tariffs was never meant to authorize their collection, and that “the pell-mell manner by which these on-again/off-again IEEPA duties have been threatened, modified, suspended, and re-imposed” was evidence of the validity of that assertion.
As the article notes, while other companies have filed similar suits, Costco’s stands out “not only because of the size of the company involved but because it illustrates how tariffs actually work—and exposes the Trump administration’s lies about them.”
The administration has responded to these suits by insisting that it would refund American importers if the tariffs were found illegal. (This was the concession that persuaded the Federal Circuit Court of Appeals to deny issuance of a preliminary injunction, allowing the government to keep collecting them during litigation.) Costco alleges that the way the tariffs are collected (among other peculiarities of this situation explained at length in the linked article) makes that promise of refunds ephemeral absent a specific company’s lawsuit. Even if the tariffs are found to be unlawful, observers have opined that the administration is likely to stall the tariff rebate, according to academics following the debate. One expert has predicted that the repayment process will be “a political quagmire” and suggested that it’s likely Costco filed suit to protect itself.
Even some of the Supreme Court justices who have taken up residence in Trump’s pocket have signaled an unwillingness to find the tariffs lawful. Roberts has (correctly) called them a tax, and noted that taxation is a core power of Congress, not the executive branch. If Costco and the other companies that have sued win their cases, what the article calls “Trump’s scam” will collapse—and his administration may be forced to make those companies whole.
The Washington Post is also covering the litigation.
The warehouse club last week became the largest company — and the first major retailer — to sue the Trump administration, seeking a full refund for the levies it has paid this year. The Supreme Court heard arguments in November on whether President Donald Trump has legal authority to impose tariffs on goods from nearly all countries, and it is expected to rule in the coming weeks or months. If it rejects the administration’s case that tariffs are justified as an emergency, the companies could be entitled to hefty refunds.
The article also pointed out that Costco “is uniquely positioned to weather any backlash from Washington” thanks to its legions of devoted customer/members– a devotion that sets it apart from most other retailers, who are accordingly more reluctant to make waves by resisting the administration.
There’s a lesson to be learned here. Costco’s approach to the conduct of its business initially earned it the devotion of those legions of members, and now, its principled stances have generated increased support from that membership.
While the grassroots efforts to boycott Target for ending its DEI programs led to weakening foot traffic and diminished financial outlooks for consecutive quarters, Costco saw a boost. Net sales for the 2025 fiscal year (which ended Aug. 31) increased 8 percent over 2024 to $269.9 billion. Net sales for November were also up 8.1 percent over last year, reaching $23.6 billion, the company reported last week.
It’s another reminder that We the People can punish cowardice and reward principled behavior.
Listening to Blanche bullshit his way through the lawlessly redacted documents that anyone can see is a cover-up. Nothing will surprise me about their delay, obfuscate, ignore the law and stonewall things they don’t want to do. This is how Trump has operated his entire life – as a criminal enterprise.
Costco , rightfully so, will continue to reap the rewards of their principled and correct stance in this matter . I am one of those strongly devoted members the article refers to .
Keep up the good fight , Costco !
This is how Roy Cohn trained Trump to handle his affairs. There is a Wikipedia page dedicated to all of Trump’s lawsuits due to how he treats EVERYONE.
I think that’s why the most notorious pedophile in our times called Trump “evil.” That says a lot!!
I know several states, the Importers Association, and the Retail Trade Association have already filed a lawsuit over the tariffs, and it’s sitting at the SCOTUS. The primary issue raised is the clusterfuc* the federal government would face if it had to repay the plaintiffs. I can only imagine how the corrupt judges handle this case behind closed doors. I am sure they are working to support Trump with some lame law or invent their own.
The blatant actions taken by Bondi and the DOJ over the Epstein cover-up show a pure disdain for the law. They know that Trump will protect them with pardons. Bondi needs prison for all her actions thus far. Not to mention Stephen Miller’s piracy in international waters. Do you think China or Russia, which just beat down Trump over his tariffs, will sit idly by while Trump steals their oil tankers?
As I’ve said before, Zeteo provides a daily recap on Saturdays showing what happened the previous week. When I look through it, it is nearly all legal filings or rulings for or against Trump’s dumpster fire administration. #lunacy
I don’t buy bulk groceries, but if I did, I would definitely support Costco.
The effect that CostCo has had by resisting t*ump and his handlers makes me wonder how things would be different if every law firm, corporation, and university had stood up to him. And if Congress had only done their job…
Sorry, to finish my thought earlier, moving forward I hope that others have learned this lesson and do not obey in advance.
Ditto James Todd’s 7:33am comment.
cautionary optimism about Costco’s lens for decisions in the battle between democracy and authoritarianism – media reported 5 months ago that the company caved to extremists when their pharmacies stopped selling Mifepristone. Journalists wrote about the decision concluding, right wing religious “extremists are celebrating and openly plotting to pressure Walgreens and CVS.”
A 13 year old girl raped by her father, step father, brother or a stranger can be prescribed the safe pill, Mifepristone, which enables her to avoid forced pregnancy. Various research sites report risk of maternal death associated with childbirth is approx, 14 times higher than the risk associated with abortion.
US pharmacies that assign themselves the authority to deny doctors’ prescriptions are antithetical to a democratic nation founded on principles of liberty.
Trump’s kingdom lives at our expense, as reflected in the downward slide of all of us who do or did work for each other as consumers, workers, and taxpayers/citizens.
We can complain about that, as we all frequently do, or we could gird our loins and fight to take back our liberal democracy by voting. That being said, I certainly applaud Costco for doing more than just voting to help us all recover what has been taken from us by institutional-sized BS.
Always fun to shop at COSTCO as we roam the aisles with consumers including newcomers from around the world. It is truly a unique experience. Asheville is working with COSTCO to find a suitable location in our mountain valley community. No small task. The business model works for everyone including team members and consumers. We purchased an import rug and had it set aside until our new quarters were renovated. Upon return, the store imposed a mark-up of $900 they said was due to tariffs. It was most disingenuous and we warned other neighbors about this store. COSTCO’s legal initiative against Trump makes me feel ‘big brother’ has my back more so than our (R) Congressman.