President Donald Trump’s tariffs cause the most immediate harm to small businesses. They don’t have the financial wherewithal or the Beltway connections to absorb or deflect higher taxes. With the aid of libertarian public-interest law firms, two of those small businesses, V.O.S. Selections and Learning Resources, were the plaintiffs in the cases challenging the tariffs that were combined and heard by the Supreme Court last month.
But big businesses will end up paying the most in tariffs because of the immense volume of goods they import. They have so far been in wait-and-see mode, viewing that as a better strategy than stirring up a feud with the temperamental president.
That phase of the tariff tussle appears to be ending. Costco, America’s 12th largest publicly traded company by revenue and 15th largest by number of employees, has filed suit at the U.S. Court of International Trade seeking refunds of the tariff money it has paid so far.
This suit confirms that American businesses pay tariffs. If, as President Donald Trump believes, foreigners were paying them, there would be no reason for Costco to seek a refund. And Costco’s suit is one of many that will be filed as the thousands of American businesses robbed by the president seek their just recompense.
Costco says imported goods account for about one-third of its sales. The warehouse club is famous for its ruthlessness in cutting prices for its members. Obstacles to lower prices don’t normally include American customs officials running roughshod over the law.
Trump may lash out against Costco with one of his Truth Social tirades. But attacking a company that has mostly kept its prices low won’t go over well with inflation-weary voters. Nearly one-third of Americans shop at Costco, and they’re concentrated in the suburban areas so crucial to electoral success.
Big business is now acting on what small businesses felt instantly: Tariffs are taxes on Americans. The largest companies had enough money to absorb some of those costs for a while, but time is running out, and they don’t want to pass them on to their customers.
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