Costco Promises Price Cuts on Expected Tariff Refunds
By Reuters | 06 Mar, 2026

Costco has thrived even with tariffs and now looks to enjoy a boost based on the Supreme Court's decision nixing Trump tariffs followed by a Trade Court ruling requiring the government to process tariff refunds.

Costco Wholesale said on Thursday it would cut prices if it received any refunds from the U.S. Supreme Court's decision to strike down President Donald Trump's emergency tariffs.

Costco was among over 1,000 businesses that sued the government saying Trump lacked legal authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Costco CEO Ron Vachris said on a post-earnings call it was not yet clear if or when companies would receive refunds from the IEEPA tariffs they paid last year, but added that the company would look to lower prices and provide better value to customers if it receives any refunds.

The company had cut prices on items such as textiles, bedding and cookware after tariffs were reduced on countries, including China, following the Supreme Court decision.

While the Supreme Court struck down the emergency duties, Trump's move to enforce temporary levies on imports is adding to macroeconomic strain for consumer companies already grappling with a volatile trade backdrop and higher cost pressures.

SALES STEADY AS CONSUMERS SHOP FOR VALUE

With Americans increasingly focusing on value to stretch their budgets stressed by high costs of rent and gas, big box stores such as Walmart and Costco are drawing consumers across income categories.

Costco, which raised its membership fee in 2024, has also been investing in its in-house brand Kirkland Signature to attract consumers looking for cheaper options to pricier national brands.

"The stock had high expectations heading into the print given its above-average valuation, but the market will likely continue to view the stock as a safe haven due to geopolitical volatility," said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. 

The company's quarterly same-store sales, excluding gas, rose 6.7%, compared with analysts' estimates of a 5.88% rise, according to data compiled by LSEG.

Net income for the second quarter rose nearly 14% to $2.04 billion. 

The company's shares were largely unchanged in premarket trading on Friday. 

"Costco is also seeing some alleviation in inflationary trends, passing the savings onto customers... although recent events could re-reverse the trend," D.A. Davidson analyst Michael Baker said. 

(Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru; Editing by Alan Barona)