Costco leaders said earlier this week that the company received a $184 million tariff refund from the federal government after the Supreme Court ruled President Donald Trumps tariff policy was illegal.
Costco said the government refunded $174 million to the company, along with an additional $10 million in interest. Costco was among the companies that sued the federal government after the Supreme Court struck down Trumps tariffs on imports.
The company said it expects to receive more than $500 million in tariff refunds overall.
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Costco CEO Ron Vachris said the company has reinvested some of these dollars to give value back to our members. Costco said the refunds helped lower prices on produce, meat, beverages, home furnishings and hardware.
We view that as very much giving value back to our members for the tariff refunds that we received, Chief Financial Officer Gary Millerchip said. Our goal was to make sure that we spread those as we could to items that would have the most impact for members.
Millerchip said many everyday items were affected by tariffs, including products in nonfood categories.
Trump has suggested foreign governments pay tariffs, but importers pay the duties when goods enter the United States. Many businesses have said tariff costs are often passed on to consumers through higher prices.
A report from the Kiel Institute found Americans are paying about 96% of the cost of tariffs, while foreign exporters absorb about 4%. The institute said it analyzed more than 25 million shipment records covering more than $4 trillion in U.S. imports.
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A Yale University Budget Lab report estimated tariffs add about $1,100 in annual costs for the median U.S. household, though the impact varies by income level.