Costco Wholesale is facing a class-action lawsuit seeking refunds for tariffs customers paid between February 2025 and February 2026. The lawsuit alleges Costco unlawfully imposed tariffs authorized by President Trump under the International Emergency Economic Powers (IEEPA) Act. Customers claim Costco should refund these surcharges, branding the company's refusal as 'unscrupulous, outrageous, offensive to the public conscience, and/or marked by injustice.' The suit asks for punitive damages if Costco's actions are found unlawful.

If successful, the case could force Costco to repay significant sums and set a precedent for other businesses handling tariff surcharges, potentially triggering nationwide refund lawsuits during a time when businesses are already navigating complex refund processes. KPMG's survey revealed that 34% of US businesses, including those similar to Costco, passed on more than half of their tariff costs to consumers, a figure that has more than doubled from 13% in May 2024. Further price increases appear imminent, with 55% of executives planning hikes of up to 15% within six months.