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Costco Says Tariff Refunds Could Lead to Lower Prices for Customers

Costco Wholesale Corporation (NASDAQ:COST) is included among the 13 Best Defensive Dividend Stocks for 2025.

Niloo / Shutterstock.com

On March 6, Reuters reported that Costco Wholesale Corporation (NASDAQ:COST) said it would lower prices if it received any refunds tied to the US Supreme Court’s decision to strike down President Donald Trump’s emergency tariffs. Costco was one of more than 1,000 businesses that challenged the tariffs in court. The companies argued that Trump did not have the legal authority to impose them under the 1977 International Emergency Economic Powers Act.

Speaking during a post-earnings call, CEO Ron Vachris said it is still unclear if or when companies will receive refunds for tariffs paid last year under the IEEPA. He noted that if Costco does receive any refunds, the company would aim to pass those benefits along to customers through lower prices and improved value. The company has already reduced prices on some products after tariffs were lowered on several countries, including China, following the Supreme Court’s decision. Items affected included textiles, bedding, and cookware.

Costco has also been investing more in its private-label brand, Kirkland Signature. The move is intended to attract shoppers who are looking for lower-priced alternatives to national brands. The company raised its membership fee in 2024 as well. For fiscal Q2 2026, Costco reported quarterly same-store sales growth of 6.7%, excluding gas. That figure came in above analysts’ expectations for a 5.88% increase, according to data compiled by LSEG. Net income for the second quarter increased nearly 14%, reaching $2.04 billion.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that sell a range of nationally branded and private-label products across multiple categories.

While we acknowledge the potential of COST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COST and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading into 2026 and 15 Best Stocks to Buy Now for Passive Income

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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