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Costco Sues Trump Admin for Tariff Refunds — Are Rebates for Americans Next?

Costco's lawsuit over Trump's tariff authority has raised fresh concerns about whether potential rebate checks could be affected.

By Sarah Sharkey
and Sara Albertelli

Edited by Calista Headrick

Updated Dec. 5, 2025

We're all familiar with the variety of tariffs that President Donald Trump has imposed. In fact, between January and July 2025, the Peterson Institute for International Economics estimates that tariff revenue amounted to over $122 billion. Currently, as the administration debates a possible tariff rebate that could send money back to consumers, a major legal battle is taking place.

Costco is now suing the U.S. government to recover import fees if the Supreme Court rules that Trump overstepped his authority in imposing "emergency" tariffs under the International Emergency Economic Powers Act. Lower courts are already siding against the administration, and importers are paying nearly $90 billion in duties. As a result, companies like Costco are scrambling to protect their rights to refunds should the tariffs be struck down.

The Trump administration has stated that a loss in court could limit how the U.S. negotiates with other nations and wipe out billions in tariff money the Treasury has already collected. So, what does this all mean for you? Will you be seeing a check anytime soon? Explore how to prepare yourself financially for possible, if any, rebates.

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Could Americans actually be getting tariff rebate checks?

Republican Sen. Josh Hawley proposed the American Worker Rebate Act in July 2025. Although this bill is currently stalled, if it were to pass, it would distribute tariff rebates to Americans. Additionally, President Trump has mentioned the idea of a tariff rebate or dividend several times while in office.

However, many are wondering whether the current legal proceedings could impact the timing or availability of any future rebate checks. The outcome at the Supreme Court could determine how refunds are prioritized and who gets paid first.

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We've seen payments before

This isn't the only time we've seen the federal government dole out checks. For example, a series of COVID-19 stimulus checks were distributed in 2020 and 2021.

When receiving the funds, these rebates might feel similar to the previous stimulus checks. Essentially, eligible taxpayers could get money from the government to use with no strings attached. But this time, the checks would be designed to offset the costs of tariffs instead of the pinch of pandemic finances.

How much could you receive?

Under the bill, eligible Americans would receive a minimum rebate of $600 per adult and child, with larger payments possible if tariff revenue surpasses expectations. However, on November 9, in a Truth Social post, President Trump stated, "A dividend of at least $2000 a person (not including high-income people!) will be paid to everyone."

Once again, with the legality of Trump's tariff policy currently being examined and many other economic factors at play, nothing has been set in stone.

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How likely is a rebate?

This bill is not yet a law. The House and Senate must both approve the bill. With both Senate Republicans reportedly lukewarm about the rebates and some economists warning against this course of action, it seems like this bill would face an uphill battle.

At the moment, this bill seems unlikely to pass in the near future. But if it did, you could quickly see funds hitting your bank account.

Arguments in favor

When it comes to rebate checks, they are undeniably politically popular. After all, who wouldn't want to receive some extra cash from Uncle Sam? Proponents argue that it could provide financial relief, especially for working-class families.

"Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump's tariffs are returning to this country," Senator Hawley said in a written statement.

Arguments against

But some economists are warning against the potential pitfalls of sending out tariff rebates.

For example, as pointed out by the Tax Foundation, "However, to the extent that tariffs do raise some revenue, with the U.S. running persistent deficits and the cost of servicing the debt becoming more expensive in recent years due to high interest rates, it would be prudential to use that revenue for deficit reduction rather than rebates." Experts also worry that the rebates could worsen inflation.

With growing deficits under the One Big Beautiful Bill, sending out rebates instead of covering the government's obligations could pave the way for a future financial crisis.

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What to do if you do get a check

It's unclear when or if tariff dividends will come our way. But, if they do, it's good to have a plan on what to do with the funds. Consider some of the best usage strategies below.

1. Pay off debt

If you have high-interest debt, using the windfall from a tariff check could help you make headway on repayment. Depending on your situation, using the hundreds or thousands of dollars to pay down your credit card balances could shave years off your debt repayment plan.

2. Top off an emergency fund

In a volatile economy, the safety net of an emergency fund becomes more important every day.

Generally, experts recommend stockpiling three to six months' worth of expenses into an emergency fund to get you through unexpected rough patches. For example, if you spend $3,000 every month, a solid emergency fund might hold between $9,000 and $18,000.

If you don't have an emergency fund or if it's underfunded, your tariff rebate could help you build financial security.

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3. Splurge a little

While making progress toward big financial goals is important, it's also okay to splurge a little. For example, if you've been holding off on a particular purchase for a while, this influx of cash could help you finally make the transaction without going into debt.

Bottom line

Whether or not taxpayers receive a tariff rebate is largely out of our control, and no official decision has been made. But when it comes to taking charge of your personal finances, you don't have to wait for a windfall to move beyond living paycheck to paycheck.

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