Costco Wholesale (COST) has filed a lawsuit against the Trump administration to secure eligibility for tariff refunds should the U.S. Supreme Court rule that the president’s tariff policy is illegal.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Costco’s complaint, which has been filed with the U.S. Court of International Trade, stems from uncertainty about whether tariff refunds will be guaranteed for businesses that have paid duties this year should the Supreme Court declare the import duties to be unlawful.
The Seattle-based warehouse club did not say in its lawsuit how much Trump’s tariffs have cost it. However, Costco’s management team has said during earnings calls this year that it is exposed to tariffs as it sources products from around the world.
Lining Up for Tariff Refunds
Costco Wholesale is one of dozens of companies that have filed lawsuits with the U.S. trade court challenging President Trump’s use of economic emergency powers to impose tariffs on imports. The Supreme Court heard arguments on Trump’s tariffs Nov. 5 and has placed the case on a fast-tracked schedule, although no ruling date has been announced.
Costco and other companies are acting preemptively to seek full refunds from the import tariffs should the Supreme Court rule against the duties. The Trump administration has acknowledged publicly that it is concerned about having to refund the $195 billion in tariffs collected so far in 2025.
Is COST Stock a Buy?
The stock of Costco has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 16 Buy and eight Hold recommendations issued in the last three months. The average COST price target of $1,091.61 implies 19.56% upside from current levels.
Read more analyst ratings on COST stock