As warehouse-style discount store Costco has filed a lawsuit demanding a guarantee of tariff refund rights against the U.S. government, analysts say the company's overwhelming clout enabled its hard-line response. Major retailers have raised product prices one after another since early this year citing tariffs, but Costco is the first to sue.
On the 7th (local time), the Washington Post (WP) highlighted Costco's lawsuit filed with the U.S. Court of International Trade (CIT) seeking a full refund of tariffs and a halt to reciprocal tariff imposition, analyzing that the company's standing and influence in the industry were the decisive drivers. Earlier, on the 28th of last month, the company filed a complaint seeking to nullify all tariffs imposed by the Donald Trump administration and to guarantee corporations the right to be fully refunded for tariffs paid so far while awaiting a Supreme Court ruling.
Corporations are moving to take similar steps. About 70 companies, including ▲ canned tuna food company Bumble Bee Foods ▲ motorcycle manufacturer Kawasaki ▲ cosmetics maker Revlon Consumer Products, filed similar lawsuits around the same time. Retailers, however, had held back, which is seen as a response driven by concerns about friction with the White House and shifts in public opinion.
Costco, however, is raising its voice on the back of a stable financial position and consumer trust. Costco's status is evident in its performance metrics: for the 2025 fiscal year, Costco's net sales rose 8% year over year to $269.9 billion. November net sales increased 8.1% from a year earlier to $23.6 billion, and as of the end of August, Costco's global membership surpassed 145 million, up 6% year over year. In addition, the membership renewal rate at U.S. Costco stores is close to 92.3%.
In particular, its business model that increased unit price competitiveness appears to have been effective in attracting customers. The strategy of securing cost-effectiveness through bulk purchasing resonated with consumers, and as inflation persisted, the influx of middle- and high-income consumers and the resulting expansion of the loyal customer base are cited as factors that bolster the company's stability. In fact, in November, Costco's store revisit rate rose 3% from a year earlier.
Its item-by-item pricing policy, which minimized customer churn, is also seen as a successful strategy. About one-third of Costco's total sales come from imports, and to minimize the impact of tariffs the company has 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 slightly raising prices on discretionary goods such as roses.
Building on its loyal customer base, Costco is charting its own course. A notable example is that, unlike many companies, it kept its DEI (diversity, equity and inclusion) programs in place when the Trump administration pressured companies to scrap them. Its stock has also been on the rise, with Costco shares surging about 140% over the past five years.
Michael Baker, an analyst at D.A. Davidson & Co., said, "Many corporations have been hit by tariffs," adding, "Among them, Costco has influence across the retail ecosystem, including consumers and suppliers, putting it in a position to withstand pushback from the administration." Glenn McMahon, chief analyst at McMahon Advisory, said, "By taking a different path from other major retailers, Costco ultimately earned consumer trust."