Costco Faces Class Action Lawsuit Over Tariff Refunds as Supreme Court Strikes Down Trump's IEEPA Tariffs

A Costco shopper has filed a proposed nationwide class action lawsuit in Illinois federal court, demanding the retail giant return any tariff refunds it receives to the customers who originally paid higher prices because of those duties. The legal challenge comes after the U.S. Supreme Court ruled on February 20 that President Donald Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad import tariffs.

The lawsuit, brought by plaintiff Matthew Stockov, argues that Costco — the third-largest retailer in the world — should not be allowed to benefit twice from the same tariff dispute. Customers, the complaint contends, already absorbed the cost of those tariffs through elevated retail prices, and allowing Costco to pocket any government refunds without passing savings back to shoppers would amount to unjust enrichment.

Costco is among more than 2,000 companies currently pursuing claims in the U.S. Court of International Trade, seeking to recover import duties paid under the now-invalidated IEEPA tariff orders. Global logistics company FedEx is facing a similar consumer class action lawsuit in Florida over the same issue.

Costco CEO Ron Vachris recently told analysts the timeline for any potential government refunds remains uncertain. He indicated that if refunds do materialize, Costco intends to direct those funds toward lower prices and better value for shoppers — though the lawsuit argues this pledge offers only a vague, future benefit to an undefined group of consumers rather than concrete relief for those who already paid more.

The legal actions signal a broader wave of consumer litigation expected to follow the Supreme Court's landmark tariff ruling, as shoppers across the country seek accountability from major retailers over pricing during the period those tariffs were in effect.