Costco’s lawsuit against the president’s signature economic policies has caused discord among its unusually loyal membership ranks. Will shoppers defect?
Costco sues Trump administration for tariff refunds
Popular wholesale retailer Costco has sued the Trump administration over tariffs. They are seeking a refund of the customs duties they paid.
Costco last week named Gina Raimondo, a former Biden administration official who had expressed skepticism about President Donald Trump’s tariffs, to its board of directors.
The announcement by Raimondo, who led the Commerce Department and played a key role in U.S. trade policy, came less than a week after Costco sued the Trump administration to ensure it was eligible for a full refund if the Supreme Court struck down the tariffs.
“Costco isn’t even pretending to be that anymore. They’re openly siding with Democratic Party operatives while waging a legal war against the administration’s economic policies,” said Lebanese-Australian entrepreneur Mario Naufal., an influential commentator on US politics said in a social media post about X that has garnered more than 200,000 views. “Vote accordingly with your wallet.”
This is not the first time Costco has taken a stance out of step with the administration. Despite increasing pressure from Trump and anti-DEI activists, Costco doubled down on its diversity, equity and inclusion policies earlier this year, even as other companies abandoned them.
The president has great influence over the corporate world, none other than Trump. His extensive use of executive power and his strong grip on the Republican base give him extraordinary influence over how companies operate. CEOs make pilgrimages to the Oval Office bearing gifts and pledging donations to Trump’s projects.
Can Costco continue to avoid the volatile politics of the Trump era? The country’s condemnation of Mr. Trump’s signature economic policies has sown discord within the otherwise loyal party.
Can Costco avoid President Trump’s backlash?
In a public Facebook group called “Costco Uncensored,” the usual chatter about free samples, $1.50 hot dogs, product picks and frying pans turned political as word of the lawsuit spread, generating hundreds of dueling comments per post.
One person posted, “Costco is suing the government over tariffs! I’m canceling my card.”
“Hahaha,” one commenter replied. “I’m happy that one company can stand up to the dictatorship. I have my business at Costco.”
Political infighting made the usual debate over Costco’s generous return policy seem tame by comparison, and anger boiled over.
“I’m revoking my membership and boycotting it forever,” one person replied to a post about the customs lawsuit.
“Costco is not an airport. No need to announce departure before departure over customs lawsuit,” another scoffed.
From DEI to tariffs, is Costco “woke”?
Chief Financial Officer Gary Millerchip said on an earnings call in September that Costco has worked to protect its members from large increases in tariffs and has kept prices from rising on many products.
“We have taken on the challenge of absorbing the costs ourselves and offsetting those costs to protect our members,” he said.
In its lawsuit, Costco took issue with the “drastic manner in which these repeated tariffs were threatened, changed, suspended, and reimposed, and the market was disrupted in response.”
Still, Costco isn’t taking much political risk, said Paul Argenti, a professor of corporate communications at Dartmouth’s Tuck School of Business.
“What Costco is doing isn’t something I find very ‘woke’ or uplifting,” Argenti said. “Costco knows who they are, they have strong values, and they stick to them. In the end, that’s going to pay off.”
Tariffs unpopular with Americans
In an interview with Politico this week, President Trump gave himself an “A plus plus plus plus” rating on the economy. But the tariffs are widely unpopular with Americans.
A Yahoo/YouGov poll conducted Nov. 21-24 found that 52% of Americans said the tariffs had a negative impact on the economy in the short term, and 43% said they had a negative long-term impact. Only 26% said tariffs had a short-term effect, while 32% said they had a long-term positive effect.
A Politico poll also conducted in November found that Trump voters also have worsened attitudes toward tariffs, with 22% saying they boost the economy now and in the long term. More than a third (36%) said tariffs are hurting the economy now but would benefit the economy over time.
Does politics influence Costco shoppers?
In a retail industry filled with fickle shoppers, Costco enjoys a cult-like loyalty. This tremendous amount of goodwill is a result of members trusting Costco to work with them.
Although Costco carries far fewer products than most retail giants, it attracts value-conscious shoppers with a selection of high-quality products at low prices, from Wagyu beef and Dubai chocolates to laundry soap and toilet paper. Members show off Kirkland Signature Brand clothing and rush into Costco several times a week to roam the aisles and munch on samples.
Market research firm Kantar estimates that Costco generates $530,000 in sales per minute in the United States. And Costco collected about $270 million in membership fees alone last year. According to Kantar data, 95% of Costco members plan to renew their membership. Current politics appear to have little influence on that decision.
Costco’s anti-inflation hot dog deal celebrates 40th anniversary
Costco sold more than 245 million hot dog combos in 2025, setting a new record.
If Costco supports diversity policies, anti-DEI activist Robbie Starbuck said he expects a “significant” number of members to leave.
Although some people with a reputation for loyal membership were outraged, Costco suffered no measurable political repercussions.
David Primo, a political science and business professor at the University of Rochester in New York, said Costco members are still unlikely to change their minds, largely because “when you walk into a Costco, you don’t feel like you’re being lectured.”
“At first glance, these may seem like risky moves, since the majority of Republican voters still support President Trump’s tariffs and Raimondo is a Biden appointee. But it’s important to remember that Costco is different from brands like Target and Bud Light that are targeted by conservatives,” Primo said. “Costco’s consumer base is extremely loyal, in part because there are few alternatives to its product mix. Boycotting Target is easy. Boycotting Costco will require lifestyle adjustments for many people.”
