Costco says it collected $184 million in tariff refunds during its fourth quarter. Rather than pocketing the windfall, the retail giant says it used most of it to cut prices for members.
The price drops hit everyday staples like produce, meat, and beverages. Some nonfood items, including home furnishings and hardware, got cheaper too.
Costco is putting its members first with their latest move.
The wholesale chain is set to get $184 million back in tariff refunds and says most of that money is going straight into lowering prices.
CEO Ron Vachris says Costco is cutting prices on everyday items including… pic.twitter.com/8A6CiO2avG
— FOX Business (@FoxBusiness) September 25, 2026
Giving Value Back
CEO Ron Vachris told investors on the company's earnings call that Costco reinvested the refund dollars to return value to members. Most of the savings came through price cuts in the back half of the quarter.
CFO Gary Millerchip said the goal was to spread the savings across items that would matter most to shoppers. He also pointed to nonfood categories that took a hit when the IEEPA tariffs first went into effect.
More Refunds on the Way
The $184 million breaks down to $174 million in refunds plus $10 million in interest. Millerchip said that's only a little over a third of what Costco expects to receive in total.
The company has already received a similar amount in its first quarter. Millerchip said Costco plans to keep putting most of that money toward member savings and will report on the impact during future earnings calls.
The refunds are part of a broader payout. The Trump administration is returning roughly $166 billion to businesses following a Supreme Court decision on the tariffs.
Following Walmart's Lead
Costco isn't alone. Walmart has also said it will use billions in tariff refunds to keep prices down.
It's a reminder that competition works. When retailers fight for customers, savings tend to find their way to the checkout line.
Back to Normal
Tariffs forced Costco to pull some products off its shelves last year and swap in replacements. Vachris said the disruption was worst in the first half of the year before easing in the third quarter.
Wall Street liked what it heard. Costco shares rose nearly 3% following the report.