As warehouse-style discount store Costco moves to sue the U.S. government to secure the right to a tariff refund, some say its overwhelming clout enabled a hard-line response. Major retailers have been raising product prices since early this year citing tariffs, but Costco is the first to actually file suit.
On the 7th (local time), the Washington Post (WP) highlighted Costco's lawsuit in the U.S. Court of International Trade (CIT) seeking a full refund of tariffs and a halt to reciprocal tariff imposition, saying the company's industry standing and influence were the decisive force. On the 28th of last month, the company filed a complaint to invalidate all tariffs imposed by the Donald Trump administration and to guarantee corporations the right to receive a full refund of tariffs paid while awaiting the Supreme Court's ruling.
Corporations are moving to take similar steps. About 70 companies, including ▲ canned tuna food company Bumble Bee Foods ▲ motorcycle maker Kawasaki ▲ cosmetics manufacturer Revlon Consumer Products, filed similar suits around the same time. Retailers, however, had held back, apparently out of concern over friction with the White House and shifts in public opinion.
Costco, however, is raising its voice on the strength of stable finances and consumer trust. Costco's stature is evident in its results: for the 2025 fiscal year, Costco's net sales rose 8% on-year to $269.9 billion. November net sales were $23.6 billion, up 8.1% from a year earlier, and as of the end of August, Costco's worldwide membership exceeded 145 million, up 6% on-year. In addition, the membership renewal rate at U.S. Costcos is close to 92.3%.
In particular, a business model that strengthened unit-price competitiveness appears to have been key to customer acquisition. A strategy of securing value for money through bulk purchasing resonated with consumers, and as inflation persisted, inflows of middle- and high-income consumers expanded the loyal customer base, bolstering the company's stability. In fact, Costco's store revisit rate in November rose 3% from a year earlier.
A pricing policy by item that minimized customer attrition is also seen as a successful strategy. About one-third of Costco's total sales come from imports, and to blunt the impact of tariffs, it diversified its supply chain while adjusting prices by item. For example, it keeps prices low on key items with high member loyalty such as bananas, while making slight price increases on discretionary goods such as roses.
Built on a loyal customer base, Costco is charting its own course. A representative example is that, unlike many companies, it maintained its existing diversity, equity and inclusion (DEI) programs even when the Trump administration pressured for their elimination. The stock has also been on an upswing, with Costco shares surging about 140% over the past five years.
Michael Baker, an analyst at D.A. Davidson & Co., said, "Many corporations were hit by tariffs," adding, "Among them, Costco has influence across the retail ecosystem, including consumers and suppliers, putting it in a position to weather pushback from the administration." Glenn McMahon, chief analyst at McMahon Advisory, said, "By taking a different path from other large retailers, Costco ultimately earned consumer trust."