Costco says it will pass on tariff recoveries to members
Add Axios as your preferred source to
see more of our stories on Google.
Costco released its quarterly earnings March 5, 2026. Photo: Kevin Carter/Getty Images
Costco said Thursday it would return any recovered tariff charges to members through lower prices and better values, even as CEO Ron Vachris warned that the "future impact of tariffs remains extremely fluid."
Why it matters: The warehouse giant is positioning itself as a buffer between trade policy volatility and shoppers' wallets.
- It's unclear whether the retailer will receive refunds tied to prior tariff payments, but Vachris pledged Costco would be transparent about how it passes along any savings if it does.
The big picture: Costco executives said the company didn't pass along the full cost of tariffs in many cases over the past year, absorbing some of the impact instead.
Zoom out: Even amid headlines about tariffs and policy shifts, executives said overall sales trends have remained "very consistent" in the 6% to 7% range when adjusting for short-term volatility.
- Executives also said inflation moderated during the quarter, trending toward low single digits as prices fell in categories such as eggs, butter and cheese.
Flashback: Costco filed a lawsuit in November seeking to block the tariffs and secure refunds of duties it has already paid, arguing that the law cited to impose them does not authorize tariffs.
- The Supreme Court invalidated President Trump's tariffs last month but the decision offered no roadmap for how refunds would unfold, leaving uncertainty around timing and process.
- Costco previously warned in its lawsuit that importers are not guaranteed refunds without securing their own court judgment.
Yes, but: The day after the ruling, Trump said he would raise global tariffs to 15%, signaling trade tensions — and pricing pressure — may not be over.
- Vachris said Costco aims to shield shoppers where possible, noting, "We always want to be the first to lower prices and the last to raise them."
Editor's note: This story was updated with additional information throughout.
More from Axios:
