Costco attacks the tariff plan that puts America — and Americans — first

Costco is suing the Trump administration.

Yes, Costco. The warehouse temple of middle-class stability where Americans stock their freezers, fill their carts, and feel briefly insulated from the chaos of the broader economy. Costco thrives when the American consumer thrives.

Remember, when faced with a choice between standing with the American worker or protecting the globalist status quo, Costco sided with the status quo.

So why file suit against the administration? The company’s board donated heavily to Democrats in the 2023-2024 cycle, and now its leadership wants its tariff money back. The lawsuit doubles as a political favor and a financial windfall.

In short, Costco refuses to accept the new populist moment.

Fighting the populist tax revolt

Trump’s tariff program funds his most audacious promise: eliminating income taxes for working Americans and issuing a $2,000 tariff “dividend” as early as next year. This would mark the largest direct transfer of economic power to workers in modern history.

Costco wants to stop it.

The company that markets itself as the moral alternative to Walmart now positions itself as the moral critic of tariff-driven tax abolition. For decades, Americans have trusted Costco as the “good” warehouse store — high quality, honest pricing, reliable value. But the rotisserie chicken glow fades fast when the company sues to block a working-class tax cut.

Costco insists its lawsuit is about fairness. Please. It’s all about politics.

Stuck in a pre-Trump mentality

Trump upended the left’s narrative by putting workers — not donors, not multinationals — at the center of national policy. The tariff-funded tax revolution threatens decades of Democratic posturing about “helping the little guy.”

So Costco’s leadership had to intervene.

The company claims it fears a pending Supreme Court ruling that overturns tariffs without refunding the money companies paid. In reality, Costco wants a heads-I-win, tails-I-win scenario.

If tariffs stay, Costco raises prices to recoup costs. If tariffs fall, Costco demands a refund. What it will not do is refund customers who paid higher prices.

Costco argues that tariffs fall under Congress’ taxing authority. A federal circuit court agreed, ruling that tariffs are a core congressional power. That argument never troubled Democrats when they rebranded an Obamacare tax as “not a tax” to shove it through the courts.

When Democrats extract revenue for their political projects, the courts call it progress. When tariffs return money to American workers, Costco calls it unconstitutional.

The truth about taxes

Income tax is the burden of wage earners, not the wealthy. Costco knows it. Democrats know it. Everyone knows it.

The wealthy use capital gains, trusts, foundations, and investment shelters. Eliminating income taxes barely touches them. It liberates the working class — precisely the group Democrats once claimed to defend while quietly shifting their coalition toward illegal aliens and the ever-expanding alphabet of sexual identities.

Trump exposed the contradiction: Democrats talk about workers. Trump delivers for them.

RELATED: Is a tariff a tax?

Photo by Kevin Carter/Getty Images

Costco chose poorly

Costco’s lawsuit will not collapse its business model. Americans will still buy their bulk salsa, tires, kayaks, paper towels, and of course, the hot-dog combo that has famously resisted inflation for decades.

But they will remember this moment.

When faced with a choice between standing with the American worker or protecting the globalist status quo, Costco sided with the status quo. A company famous for its generous return policy may soon see a return movement of its own as consumers decide they want their tariff-inflated dollars back.

The company’s lawsuit reveals something not so flattering about the “good” big-box store: Liberal elites love talking about helping workers — as long as it never requires losing money for workers.

The Trump tax-and-tariff revolution threatens that arrangement. And Costco’s leadership made its position clear. I’ll still eat their hot dogs after making a few returns and taking a few extra free samples.