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Editorial: Costco's lawsuit puts Trump's tariffs on trial at the kitchen table

Chicago Tribune Editorial Board, Chicago Tribune on

Published in Op Eds

Costco has become a symbol of American abundance.

A place where you can buy a 10-pound rack of ribs, Christmas lights, a new winter coat, shoes for your kids, a flat-screen TV or those delicious gluten-free macarons. You can get a massive slice of pizza for $1.99. If you’re a hungry high schooler, you can buy the whole pie for about $10.

A handful of viral videos on TikTok and X show people from communist countries such as Cuba, as well as former Soviet bloc nations, having emotional reactions as they first experience the store’s aisles of plenty, wandering awestruck amid cases of oversized meats, prepared food and clothing.

To some degree, most of us feel that sense of wonder when we walk into one of these warehouses.

Point is, Costco is a beloved part of American culture. A place where you can get a good deal and a good meal — and about a thousand other things. And President Donald Trump’s tariffs are on their naughty list this holiday season.

Costco is suing the Trump administration, asking the courts to overturn the sweeping tariffs imposed beginning in February under the International Emergency Economic Powers Act and arguing the law doesn’t actually give the president authority to levy import duties without the approval of Congress. The retailer is also seeking refunds of tariffs it has already paid this year on imported goods.

Costco has not publicly disclosed the cost it has incurred due to Trump’s trade wars, but it’s certain to be a lot of money. And when one of America’s biggest retailers is forced to shoulder substantial new tariff costs, a fair chunk of those expenses show up in its price tags. Ordinary Americans ultimately pay that freight.

Americans trust Costco with a kind of bipartisan affection that’s increasingly rare in today’s politically fraught consumer landscape. The chain symbolizes value, fairness, stability and competence — traits many voters feel our politics lack. When a brand with that sort of credibility publicly challenges a president’s signature economic policy, it punctures Trump’s narrative that his tariffs primarily hit foreign governments rather than American consumers and businesses.

 

In short, Costco has loads of clout with suburban families, small business owners and other middle-income shoppers who watch prices closely. What they say and do matters.

The mega retailer isn’t the only company that’s challenged Trump’s tariffs. Learning Resources LLC, a Vernon Hills toymaker, also filed suit, as did Revlon and Kawasaki Motors. The Supreme Court recently heard arguments on the challenge by Learning Resources and another plaintiff and is expected to decide within the next few months. If the court rules against Trump, it would deal a major blow to what has become a central plank of the president’s trade agenda.

No matter what the courts decide, shoppers are already feeling the consequences. Even with inflation cooling, prices remain well above pre-pandemic levels, giving warehouse clubs a bigger role in helping families stretch their budgets.

And if the brand on which you rely for necessities points the finger at tariffs, you’re more likely to listen.

Trump can shrug off criticism from economists or Democrats. But when one of the country’s most beloved brands says his trade policy is misguided, it risks shifting the conversation from ideology to everyday life — where Trump’s message is most vulnerable.

___


©2025 Chicago Tribune. Visit at chicagotribune.com. Distributed by Tribune Content Agency, LLC.

 

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