Costco Just Got Sued Over Tariffs

Costco is getting sued by a customer who wants his money back over tariffs. Matthew Stockov of Illinois is seeking class-action status for the suit filed Wednesday in federal court, reports the Wall Street Journal. The lawsuit demands that Costco pass along to customers any refunds it might get from the government over the tariffs, which the Supreme Court invalidated last month. Costco has sued the US Customs and Border Protection Agency for a refund, notes Business Insider.

"Costco is poised to be paid twice for the same unlawful tariff burden," the lawsuit says. The case lands as the federal government is under pressure to return roughly $166 billion in tariff revenue, with the Court of International Trade saying refunds are owed but not spelling out how they'll flow. Costco declined to comment on the lawsuit, but CEO Ron Vachris said last week that if the company receives tariff refunds, it aims to pass the value back through lower prices rather than direct payments. Other big names, including FedEx and UPS, are facing similar suits. Many retailers say they only partially passed tariffs along—making any effort to calculate customer refunds anything but straightforward.