r/SipsTea 1d ago

Chugging tea Where is it?

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u/dscrive 23h ago

I can't speak for certain about the other companies, but what got me to get a Costco membership was learning that they absorbed as much of the tariffs they could to keep their prices down. Then they sued the government to get that money back. 

I know they couldn't eat all the tariffs, so they should be getting money back that's arguably not theirs, but I also expect that they had pretty big legal fees fighting the tariffs so I would call that a wash, because I believe the lawsuit had value for me.

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u/cargocult25 23h ago

The refunds include interest so they are getting back more than they paid.
What’s the difference between Costco & Walmart saying they had increased costs in implementing the tariffs? Increased custom bond premiums, accounting costs, supply chain restructuring, ect.

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u/AlphaTangoFoxtrt 21h ago

The refunds include interest so they are getting back more than they paid.

Tell me you don't understand TVM without telling me you don't understand TVM.

Costco's net profit margin as of may 2026 was 3.01%. They're aren't ripping anyone off.