Costco suit highlights gaps in $166B tariff refund process

By Brett Rowland
The Center Square

Warehouse retailer Costco Wholesale asked a federal judge to dismiss a proposed class-action lawsuit seeking consumer tariff refunds, saying the claims are premature and meritless, the latest sign that the $166 billion International Emergency Economic Powers Act tariff refund process could become the administrative “mess” Justice Amy Coney Barrett warned about.

Barrett cautioned during oral arguments in November 2025 that refunding the tariffs could be “a mess.” Four months later, U.S. Customs and Border Protection has processed about $35.46 billion of the $166 billion owed to importers, according to a sworn declaration filed May 12 in the U.S. Court of International Trade.

Consumers are unlikely to see any of that money. The tariffs amounted to an average tax increase of about $1,000 per U.S. household in 2025, according to the Tax Foundation. Treasury Secretary Scott Bessent said in February he does not expect consumers to get any money back. By law, refunds go only to the businesses that paid the tariffs at import, not to consumers who absorbed the costs through higher retail prices.

CBP launched its refund portal, called the Consolidated Administration and Processing of Entries, on April 20. As of May 11, importers had submitted more than 126,000 refund declarations, although 1,880 consolidated refunds remain stalled because importers failed to provide bank account information, CBP Executive Director Brandon Lord said in the May 12 filing.

Costco is among thousands of importers seeking refunds. The retailer filed its own lawsuit in November 2025 seeking a full refund of tariffs it paid. The company said in court filings it has not yet received any money back from the government. In March, Illinois resident Matthew Stockov filed a separate proposed class-action suit against Costco arguing that consumers, not the company, are the “true victims” of the tariff regime and deserve a share of any refunds Costco receives.

Costco asked U.S. District Judge Steven Seeger in Chicago to dismiss the lawsuit on May 18, arguing the claims are not ripe because no refunds have been issued and plaintiff Matthew Stockov suffered no harm. Costco said Stockov received the products he purchased and that retailers are not liable simply because costs that contributed to higher prices later disappeared.

Costco CEO Ron Vachris suggested the company would return value to members if refunds arrive.

“Our commitment will be to find the best way to return this value to our members through lower prices and better values,” Vachris said during the company’s March 5 earnings call.

Stockov’s attorney, George Zelcs, countered in the complaint that consumers otherwise have “no direct avenue for redress.”

The refund effort faces a shifting legal landscape. Hours after the Supreme Court struck down the IEEPA tariffs in February, President Donald Trump imposed a new 10% global tariff under a separate law. A federal trade court struck down that tariff on May 7 as well.

“We always do it a different way,” Trump said after the ruling.

Trump is also pursuing tariffs under a third statute that could trigger another round of import taxes as early as July.