Costco Sues Trump Administration Over Tariffs as Holiday Prices Rise

Holiday shopping continues even as Black Friday and Cyber Monday come to an end, but major retailers like Walmart, Target and Best Buy say rising costs are forcing them to increase prices this season.

Costco is now taking the issue to court. The company is suing the Trump administration over the “reciprocal tariffs” the president began imposing on imported goods earlier this year. In its filing to the U.S. Court of International Trade, Costco argues the tariffs are unlawful and wants to ensure it qualifies for refunds if a related Supreme Court case results in the duties being overturned.

The retailer says it has worked to keep prices low for customers but notes that tariffs make that increasingly difficult, especially as many of its products are imported and subject to additional duties. While some companies have passed those costs on to consumers, others have tried to absorb them.

The Trump administration maintains the tariffs should stand, arguing they benefit the country. “We’re making a lot of money because of the tariffs that are pouring in,” Trump said.

All of this is unfolding during the peak holiday shopping season. Federal Reserve data shows affluent consumers continue purchasing luxury goods, but spending is down among low- and middle-income Americans — groups most affected by rising prices.

Costco has not disclosed how much it has paid in tariffs, but economists say more companies may follow its lead and file suit if the courts ultimately rule these tariffs unlawful.