- cross-posted to:
- news@hexbear.net
- business@lemmy.world
- cross-posted to:
- news@hexbear.net
- business@lemmy.world
The wholesaler is the latest company to file a lawsuit against a federal agency over the president’s signature economic policy.
Costco Wholesale has filed a lawsuit against the Trump administration, asking the Court of International Trade to consider all tariffs collected under the International Emergency Economic Powers Act unlawful.
The company said in a Nov. 28 filing that it is seeking a “full refund” of all IEEPA duties paid as a result of Donald Trump’s executive order which imposed what he called “reciprocal” tariffs.
“Because IEEPA does not clearly authorize the President to set tariffs…the Challenged Tariff Orders cannot stand and the defendants are not authorized to implement and collect them,” Costco’s lawyer writes in the lawsuit.
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This is how they transfer wealth from consumers to corporations
We pay the tariffs Corporations get the tariff refund
Trickle up economics as usual
If you look at Costco’s actions in the past they have been pretty fair for their customers. Costco is actually in a very good position where they know exactly who bought what and Costco can issue refunds to their customers based on that data. Even if they just do it as ‘store credit’ it would still be very welcome to most of their customers and that would help to offset Costco’s administrative costs of determining the refund amounts for everyone.
I like Costco as much as the next person but they will absolutely not be refunding us based on what we purchased lol
I’ll happily eat these words but im fairly certain I won’t have to
The article states that on a bunch of items they’ve just been eating the cost so they’ve been paying the tariffs instead of passing them on. For those cases, there is nothing to refund to the consumers.
Yeah but it doesn’t state they’ve eaten the tariffs on everything just certain staple items
And I would wager those items they’ve eaten the cost on, is what they’re seeking compensation on.
I’ve also heard that costco doesn’t suck to work for as far as retail goes and many will actually work most of their career there.
Fwiw the people seem cheerful enough. At least not dead inside like Wal mart or any other big chain.
From the article:
In May, on Costco’s earnings call, Chief Financial Officer Gary Millerchip told investors that about a third of Costco’s sales in the U.S. are imported products. Millerchip said items imported from China represented about 8% of total U.S. sales.
Millerchip said that while Costco was seeing a direct impact from tariffs on imports of some fresh food items from Central and South America, it decided not to increase prices “because they are key staple items” for its customers.
Some of those fresh food items included pineapples and bananas. “We essentially held the price on those to make sure that we’re protecting the member,” he said.
In September, Millerchip told analysts: “We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense and consolidating our buying efforts globally to lower the cost of goods across all our markets.”
That’s great but only represents Costco. I purchased a lot of things not from Costco that had explicit tariff surcharges on them
Ok? This article is about Costco
It’s also generally about corporations receiving the tariff refunds and not us
No. That’s what we call “hijacking the thread”, which is just plain rude.
¯\_(ツ)_/¯
The article literally says Costco is just the latest company to file suit and lists a bunch of other companies too
The article is literally about Costco. They throw in a single line at the very end about some other companies.
Maybe. It depends on if they raised prices first to capture the losses. I know that seems like what a business would do first and what everyone predicted, but did they?
If it’s true, then Costco just needs to give away free hot dogs meals (drink and side) to their patrons for a year.
My small business did not raise prices, and recouping that $6k would make a HUGE difference for us. But I know most companies probably aren’t in the same boat.
Same here. We sold several computer systems at our original quoted price, and just ate the price increase from our vendors.
If Costco doesn’t refund the tariffs to customers, instead bringing back the Kirkland beef lasgana and big muffins, I would be alright with that. The last three or four years had some shrinkflation and loss of variety at Costco, which disappointed me.
While Costco is still one of the best stores to shop at, the American decay is still touching them. It doesn’t feel good.
It has been an devolution at my store: Big lasagna for the last few decades, then a twin pack of smaller ones the last three or four years, and now this flavor is simply gone.
“reciprocal tariffs”
He just pre-reciprocal-ed the tariffs before the other countries.
Tbh that’s pretty based. Solid move, Costco.
But also, why are the the first large company to do this?
They’re not. Read the article. Or at least the first line of the summary.
From the bottom of the article:
Global cosmetics giant Revlon, eyeglass maker EssilorLuxottica, motorcycle manufacturer Kawasaki, canned foods seller Bumble Bee, Japanese auto supplier Yokohama Tire and many smaller firms have also filed similar suits.
That probably does make Costco the most “known” company to sue.
Fuck yeah Costco!
Don’t celebrate just yet. Costco will likely take the money for themselves and not do a damn thing for their members.
