Costco says it will return U.S. tariff refunds to members ‘in some form’

Costco signage in Mississauga on July 10, 2025. Photo by Peter J. Thompson/National Post

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Costco is among thousands of companies suing the U.S. federal government for a return of tariffs the government collected after the U.S. Supreme Court struck them down in February.

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Costco is also facing a class-action lawsuit in the U.S., arguing that any refunds it receives from the government should be paid to its members.

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Costco chief executive Ron Vachris said Thursday the retailer intends to pass down the money to members, though they have not received the federal refunds to date.

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“Our plan is to return to our members in some form the portion of tariffs that were passed on to them,” he said on an earnings call on Thursday.

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Vachris said the company has begun submitting tariff refund forms and expects payments on a rolling basis within the next few months.

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“What we return and when depends on a variety of factors, including how much refund money we receive and when it arrives, as well as developments in the lawsuit filed against the company regarding the return process,” he added.

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Overall, Costco beat expectations for the three months ending on May 10, with net sales of US$69.15 billion, up more than 11 per cent from a year ago.

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The retailer’s gas division was a particular bright spot. It saw “record-breaking volumes” as customers turned to Costco for discounted gas as prices have skyrocketed because of the war in Iran.

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“We believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse,” Vachris said.

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The popularity of weight loss drugs like Ozempic have benefited Costco’s pharmacy division, where customers can typically receive a discount on expensive drugs.

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“The value that we’re offering in our pharmacy is really helping members take advantage of those drugs in a very cost effective way,” said Costco chief financial officer Gary Millerchip.

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These drugs have also spurred more high-protein focused diets, and Costco has taken notice.

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“Anything protein right now is doing extremely well. Protein bars, protein snacks, beef sticks,” Millerchip said.

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“That’s an example of an area where we’re really leaning into those items because of what we’re seeing from our members in the value and quality they’re looking for.”

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