• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream

2

Current price of oil as of June 16, 2026

3

Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI

1

'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream

2

Current price of oil as of June 16, 2026

3

Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
LawFortune 500

With Trump’s tariffs deemed illegal by the Supreme Court, Costco stands to win big both financially and on reputation

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
February 20, 2026, 4:55 PM ET
Scott Olson—Getty Images
Add Fortune on Google for similar content.

Costco Wholesale has won the loyalty and almost religious devotion of tens of millions of members thanks to one tenet in how it has run its business since its founding decades ago. Everything it does is aimed at keeping costs low so it can offer shoppers the deals on top merchandise that keep them coming back in droves week after week.

Recommended Video

It was in that spirit that Costco last autumn became one of the first major companies (along with the likes of Revlon and motorcycle-maker Kawasaki) to sue the Trump administration over its “Liberation Day” tariffs regime. Its strategy was vindicated on Friday, when the U.S. Supreme Court slapped down those tariffs as unconstitutional.

Costco was seen at the time as taking a big risk by being the most prominent U.S. company to publicly oppose President Trump, on his signature issue at that, at a time many CEOs seemed (as they still do) to live in terror of landing in the president’s crosshairs. Still, this was not an ideological move, but rather a classic Costco business move.

In its filing last December with the U.S. Court of International Trade, Costco said its lawsuit was intended to ensure it was eligible for a full refund if the Supreme Court rejected the administration’s rationale for tariffs collected under the International Emergency Economic Powers Act. The suit made headlines that have only strengthened Costco’s reputation for looking out for its customers.

Costco has never said how much in duties it has paid, but the retailer has said about one-third of its products sold in the U.S. are imported—so it is likely to be no small sum. (One estimate, calculated by Penn Wharton Budget Model economists calculated for Reuters, is that more than $175 billion in U.S. tariff collections in all might have to be refunded.) The Supreme Court said nothing about the refunding process in its decision, leaving that an open question, and Justice Brett Kavanaugh said in his dissent that the refund issue “is likely to be a mess.”

Trump later in the day responded to the decision by announcing new 10% global tariffs under a different statutory authorization.

Costco, which posted revenue of $275 billion in its most recent fiscal year, has said a number of times that it has managed to cope with the tariffs, changing up its assortment when a new tariff made an item too pricey. “Our buyers continue to do an excellent job finding new and exciting items at great values while also adjusting our assortment to minimize the impact of tariffs,” Costco CFO Gary Millership told Wall Street analysts on an earnings call in December. Costco did not immediately respond to a request comment on the Supreme Court decision.

Butt out, please

Costco has a history of pushing back on outside attempts to force it to change how it runs is business. That includes outside decisions that could force it to change what it sells to customers. Costco offers a tiny selection compared to the likes of Walmart, Amazon, and Target, with an assortment of about 4,000 items compared to 100,000 and other big-box stores. That means it can ill afford a misfire, a risk amplified by these tariffs.

We saw that Costco ethos in action last year when the company pushed back attempts by activists to force it to drop its DEI (diversity, equity and inclusion) programs, in contrast to a rush by many Fortune 500 companies to mollify Trump and his supporters by rolling them back.

“As our membership diversifies, we believe that serving it with a diverse group of employees enhances satisfaction … And we believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact,” the company said in a statement last year in response to an activist shareholder’s anti-DEI proposal. The takeaway with Costco always amounts to: “Let us run our business as we see fit.”

Costco has endured “Go woke, go broke” boycott threats, but the retailer’s business has continued to thrive in recent years. It turns out that many Trump supporters are members too, and as such they’re like most Costco aficionados: too addicted to Costco’s knack for surprising merchandise and staples at attractive prices to give it up.

That brings us right back to why Costco took the lead among major retailers to fight the tariffs in the first place: maintaining its options for which merchandise it sells and protecting its ability to keep prices low.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Law

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Law

Needles used to detect breast cancer in shortage from recall
Healthbreast cancer
Needles used to detect breast cancer in shortage from recall
By Annika Inampudi, Anna Edney and BloombergJune 17, 2026
2 hours ago
doj
LawRace
Trump’s DOJ asks judge to halt first reparations program in U.S. history
By Safiyah Riddle and The Associated PressJune 17, 2026
8 hours ago
Anthropic CEO Dario Amodei speaking into a microphone.
NewslettersEye on AI
Decision on Anthropic’s Fable and Mythos models means the U.S. has a licensing regime for frontier AI—it just doesn’t want to admit it
By Jeremy KahnJune 16, 2026
1 day ago
U.S. Treasury Secretary Scott Bessent.
EconomyFederal Reserve
Trump turned the dollar into a foreign policy tool, and now risks undermining the currency’s extraordinary status, think tank says
By Tristan BoveJune 16, 2026
1 day ago
‘It’s on us’: Luigi Mangione’s hearing delayed after DA failed to request him from jail
Lawcourts
‘It’s on us’: Luigi Mangione’s hearing delayed after DA failed to request him from jail
By Michael R. Sisak and The Associated PressJune 16, 2026
1 day ago
cj
CommentaryIBM
IBM’s $17 million DOJ settlement makes the case for civility
By Carolynn JohnsonJune 16, 2026
1 day ago

Most Popular

'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream
Success
'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream
By Nick LichtenbergJune 16, 2026
1 day ago
Current price of oil as of June 16, 2026
Personal Finance
Current price of oil as of June 16, 2026
By Joseph HostetlerJune 16, 2026
1 day ago
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
Big Tech
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
By Tristan BoveJune 15, 2026
2 days ago
Exclusive: Universal beat Disney as Hollywood's maker of the most expensive movie of all time 
Arts & Entertainment
Exclusive: Universal beat Disney as Hollywood's maker of the most expensive movie of all time 
By Christian SyltJune 17, 2026
12 hours ago
Current price of oil as of June 17, 2026
Personal Finance
Current price of oil as of June 17, 2026
By Joseph HostetlerJune 17, 2026
9 hours ago
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
Startups & Venture
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
By Emma HinchliffeJune 13, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.