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Shoppers are suing Costco and Amazon over tariff markups, but the government is refunding importers, not customers

Shoppers who paid tariff-inflated prices at Costco and Amazon are turning to the courts, filing class-action lawsuits that accuse the retailers of keeping government tariff refunds while holding on to the higher prices customers already paid at the register. The suits are part of a wave of more than 100 filed since the Supreme Court voided the underlying duties in February, and they seek to force companies to share the money with consumers. So far they have produced no payouts, and the funds the government is actually returning are flowing to importers, not to the households that footed the bill at checkout.

The theory behind the Costco and Amazon lawsuits

The core allegation is that retailers raised prices citing tariffs, then positioned themselves to recover those same tariffs from the government once the duties were struck down, keeping both. One proposed class action filed in Seattle contends that Costco built the illegal tariff costs into the prices shoppers paid, covering customers who bought affected goods between February 2025 and late February 2026, when the tariffs ended. A parallel case targets Amazon under Washington state consumer-protection law, using the same basic logic, and similar complaints have since named other national retailers that sell large volumes of imported goods.

These are not isolated filings. Court filings describe how Costco allegedly passed illegal tariff costs on to customers, and since the ruling plaintiffs’ firms have brought more than 100 putative class actions across dozens of federal districts, naming large importers and retailers on theories of unjust enrichment and unfair trade practices. The common thread is a claim that companies should not be allowed to retain both the price increases collected from consumers and the duty refunds returned by Customs, a double recovery the plaintiffs say the law should not permit.


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Why the refunds go to importers, not customers

The lawsuits exist precisely because the official refund process leaves consumers out. When courts ordered the tariffs returned, they directed Customs and Border Protection to refund the duties to the importer of record, the business that paid the government when goods entered the country. A retail customer never transacts with Customs, has no record of paying any specific duty, and therefore has no standing to file a refund claim against the government.

That structural gap is what the class actions are trying to bridge, by seeking money from the retailers rather than from the government. The suits do not challenge who receives the federal refund; they argue that once a company collects that refund, it should pass a share to the customers who paid the inflated prices. Whether courts accept that argument, and how they would calculate any individual shopper’s share, are open questions with no settled answer yet.

What a shopper can realistically expect

For an older consumer hoping to recover a few dollars on a year of higher grocery and household bills, the near-term outlook is modest. Class actions of this kind can take years, many are dismissed or consolidated before any money changes hands, and even successful cases often return small per-person amounts after legal fees. Early coverage of the Costco filing framed it as customers seeking a share of the tariff refunds, not as a guaranteed recovery, and no court has ordered any retailer to pay. The companies are expected to contest the suits vigorously, arguing that shelf prices reflect many costs and that no law entitles a shopper to a refund the government paid to someone else.

There is also a scam risk worth flagging. Any website or caller promising to file a tariff-refund claim on a shopper’s behalf, especially for a fee, should be treated with suspicion, because no consumer-facing government refund program exists for these duties. Legitimate class actions do not require upfront payment and reach eligible members through court-approved notices, not cold outreach.

The litigation has exposed an uncomfortable mismatch: the people who ultimately paid the tariffs have the weakest legal claim to getting the money back, while the businesses in the middle are collecting refunds directly. The lawsuits are an attempt to correct that, but they remain contested and unresolved.

Until a court rules or a settlement is approved, the honest status is that shoppers have filed claims, companies are contesting them, and the government’s refunds continue to run to importers alone. A retiree who paid more all year has a lawsuit to watch, not a check to expect.

This article was produced with AI assistance and reviewed against primary sources by The Money Overview editorial team.

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Daniel Harper

Daniel is a finance writer covering personal finance topics including budgeting, credit, and beginner investing. He began his career contributing to his Substack, where he covered consumer finance trends and practical money topics for everyday readers. Since then, he has written for a range of personal finance blogs and fintech platforms, focusing on clear, straightforward content that helps readers make more informed financial decisions.​