BUSINESS

Costco built its business around a fairly simple promise. People pay for membership, and they get the lowest possible prices the chain can deliver. The warehouse club offers the lowest prices of all major chains, according to a recent Consumer Reports study.The data showed that the warehouse club charged an average of 21.4% less than Walmart, which was used as the baseline for the report. “Prices were collected in person from store shelves in late summer 2025. Within metro areas, all prices were collected within a 48-hour period. The amounts shown reflect sale prices and discounts available to shoppers using free store loyalty cards but don’t reflect manufacturer coupons or savings available only through smartphone apps,” the consumer advocacy website shared.Now, Costco has made another price-related move that will delight its members. Costco takes a stand on tariffsIn February, Costco took the bold step of suing the federal government over the tariffs placed on imported goods by the President Donald Trump administration. “Costco was among the largest of more than 1,000 retailers that sued, arguing that the president had exceeded his emergency powers in enacting some of the tariffs…Oral arguments in November went badly for the administration, and prediction markets currently put 70% odds on the Supreme Court overturning the tariffs,” Semafor reported.The chain wasn’t making a political statement. It was preserving its right to go after a tariff-related refund, should the tariffs be declared illegal.That, of course, happened, as the Supreme Court struck down the tariffs.”In a major ruling on presidential power, the Supreme Court on Friday struck down the sweeping tariffs that President Donald Trump imposed in a series of executive orders. By a vote of 6-3, the justices ruled that the tariffs exceed the powers given to the president by Congress under a 1977 law providing him the authority to regulate commerce during national emergencies created by foreign threats,” ScotusBlog reported.Now, Costco has made a bold promise to members if it gets a refund on any tariffs it paid to the U.S. government.Related: History of Costco: Company timeline and factsCostco will give tariffs back Costco CEO Ron Vachris spoke expansively about tariffs during the warehouse club’s second-quarter earnings call.”The future impact of tariffs remains extremely fluid, as the recently eliminated AIPA tariffs have now been replaced with new global tariffs for at least the next 150 days. Our buyers continue to act with great agility and urgency, always with the goal of reducing the impact of tariffs on prices for our members,” he said. He was also clear that a lot of uncertainty remained over any potential refunds due to the Supreme Court decision.”Regarding IEPA tariff refunds, it is not yet clear what the process will be, what refunds, if any, will be received, and when this will happen. Throughout the past year, we have taken action to reduce the impact of tariffs; in many cases, we did not pass the full cost on to our members,” he said.More Costco:Costco credit card change gives it a $1,000 edge on Sam’s ClubCostco members saddened over discontinued itemsBank of America revamps Costco stock price before earningsShould there be a refund, however, Vachris promised Costco would return the money to members.”As we have done in the past, when legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members through lower prices and better values. We will be transparent in how we plan to do this if and when we receive any refunds,” he shared.Most companies will not be following Costco’s lead.A survey from KPMG of 300 U.S.-based c-suite and business leaders at organizations across sectors with annual revenues above $1 billion shared with Fortune’s CFO Daily and CFO Dive found only 18% would fully reverse price hikes resulting from Trump’s tariffs. Among the respondents, 34% would implement a partial rollback of price increases and 30% would use temporary promotional pricing, RetailWire reported.

Costco works to keep prices low for members.Shutterstock

Analysts share impact on Costco’s tariffs”Costco’s business is built on the principle that members pay a fee to access great value. As Costco mostly makes its profit from those fees, all actions are designed to protect renewals. That includes investing tariff refunds into lowering prices,” GlobalData Managing Director Neil Saunders shared on RetailWire. He noted that keeping the money would not be in line with the company’s promise to members.”Sure, Costco could keep the refund money as profit — just as it could charge more for its hotdog meal. It won’t because it doesn’t want to kill the membership goose that lays the golden eggs,” he added.The warehouse club has different priorities than traditional retailers.”The goal is not to maximize margin on each item or category, but to deliver the lowest possible cost structure to the member and earn the majority of profit through membership growth and renewal. In that context, returning tariff savings to shoppers reinforces the trust relationship that underpins the entire model. It sends a clear signal that Costco’s interests are aligned with the members’ wallets,” WhyteSpyder Vice President of Partnerships Scott Benedict shared on RetailWire.Shep Hyken, RetailWire and bestselling New York Times author, offered further detail.”This is why Costco has happy members. When you understand how they operate, it makes sense that they would find ways to channel tariff recoveries (or other ways to save money) back to their members. This is how they have retained and grown their membership,” he wrote.Related: Costco issues urgent warning to shoppers

Estate planning decisions often come down to a deceptively simple question: Should parents divide their estate equally among their children, or allocate assets based on need?That tension between fairness and equality is one of the most common sources of conflict after a parent dies. In an interview, Harry Margolis, author of “Get Your Ducks in a Row,” said those disputes often arise because families never discussed the plan ahead of time.Below is a transcript of that interview, edited for clarity and brevity.Discussing estate plans with familyRobert Powell: How might you talk to your family about your estate plan in a way that reduces conflict and addresses the difference between fair versus equal inheritances? Here to talk with me about that is Harry Margolis, author of “Get Your Ducks in a Row.”Harry, I’m sure this is a question you get all the time: fair versus equal.Why equal inheritances are commonHarry Margolis: We don’t get the question all the time, but we definitely hear it because in most cases people divide their estate equally among their children. When everything is split evenly, it usually doesn’t become an issue.But children can be in very different places, economically and financially. They may also face other challenges such as illness, divorce, or raising children with special needs. Because of those differences, you may want to help one child more than the others, or you may be closer to one child and estranged from another.The problem is that money is often equated with love. When children inherit less than their siblings, they may feel neglected. That can create resentments that continue long after the parents are gone. And that’s something most parents want to avoid.So the question becomes how to balance different needs and circumstances without creating conflict.What many people choose to do is keep their estate plan equal for everyone but help children during their lifetime. If one child needs help because they are about to face foreclosure or have run into other challenges, the parents help them out while they’re alive.Then, in the estate plan itself, everything is divided equally. What you do with your own money during your lifetime is your business. But the legal documents treat everyone the same. That’s one solution.

When unequal distributions may make senseHarry Margolis: In other cases, the needs really are very different.You might have one child who is an investment banker, and whatever you leave them would be pocket change. Another child might be a home health worker earning much less, or someone who chose a nonprofit career and is scraping by financially.In those cases, parents may want to provide more support to the child who needs it most.But if you’re going to do that, I think it’s better to explain the decision while you’re alive. Talk about it openly rather than letting it come as a surprise after your death. That conversation can help families work through the emotions and avoid misunderstandings later.Planning for a child with special needsHarry Margolis: Another situation where unequal planning often arises is when a family has a child with special needs.In many cases, parents set up a special needs trust to be funded after they pass away. The child’s needs are greater, but parents may still want to divide the estate equally among the children.One strategy is to split the estate evenly, with the child’s share going into the special needs trust. Parents may then purchase life insurance to provide additional funding for that trust.The life insurance ensures there will be money available for the child with special needs, even if the parents’ assets are depleted later in life by long-term care or other expenses. The only cost to the estate is the insurance premiums paid during life.When estate plans lead to disputesRobert Powell: You mentioned explaining decisions in advance as a way to reduce conflict. Have you seen situations where conflict couldn’t be avoided, where family members challenged the will or the distribution of assets?Harry Margolis: Yes. We’ve certainly seen situations where people were very upset when they discovered how the estate was divided.Also worth readingRetirees may want to rebalance as markets broaden, volatility risesWhy “breaking even” on Social Security is the wrong goalThe $83,250 secret every solo entrepreneur needs to know for 2026Medicare mistakes seniors wish they’d known soonerElon Musk says stop retirement saving: Experts call it ‘nonsense’Social Security benefits could drop 7% in 2032Actual legal challenges often arise when a parent changes their estate plan shortly before death. That can happen when the parent has physical or cognitive impairments and has been receiving help from one child.In those cases, the other siblings may claim the change was the result of undue influence.But if someone is clearly competent when they make their decisions, the law generally allows them to do whatever they want with their money.The risk of undue influenceRobert Powell: When it comes to undue influence, it may not always be a child. I’ve seen cases where a visiting nurse or home health aide somehow ends up inheriting the bulk of someone’s estate.Harry Margolis: Yes, those cases do happen, and they often end up in litigation. In many situations, it ultimately isn’t worth the effort for the person who tried to take advantage of the situation.Final advice for familiesRobert Powell: So the key advice for reducing conflict is to explain decisions in advance and be aware of the different strategies available to make things equal or fair.Harry Margolis: Exactly. Even though it may not always feel that way, equal treatment in a will is usually viewed as fair.If you’re not going to divide your estate equally, it’s important to make the reasons clear and discuss them openly with your family. That transparency can go a long way toward preventing disputes later.Related: The hidden cost of retirement withdrawal rates

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealIn need of a storage upgrade? We spotted a storage cabinet that is not only budget-friendly, but also the perfect fit for small spaces. At only $37, the Hzuaneri Narrow Storage Cabinet has the potential to make a big difference even in the smallest of rooms. Upgrading your storage is one of the easiest ways to improve the flow of your home. With the right pieces, you can significantly reduce clutter and make it easy to find your belongings. And in compact rooms like bathrooms, that easy access is a game changer. Hzuaneri Narrow Storage Cabinet, $37 at Amazon

Courtesy of Amazon

Why do shoppers love it?This storage cabinet has a surprising amount of storage and versatility, especially for its size. It measures 7.9 inches long by 7.9 inches wide by 32.7 inches high, making it a great fit for narrow spaces. It’s just what you need to finally get some storage in those tiny corners or spaces between fixtures, like the notoriously small space between a bathroom sink and a toilet. Believe it or not, this compact cabinet has five shelves in total. There are three open shelves above the single-door cabinet. One of the open shelves is adjustable to three heights, giving you the option to customize the space. The open shelving is ideal for decorative items, like candles or plants. The other shelves can be used for beautifully-packaged hand lotions or soaps, along with rolled hand towels or face towels, which would give any bathroom a spa-like touch. Inside the cabinet are two additional shelves, one of which is also height-adjustable. In this space, you can easily put a small basket to contain your toiletries or stack extra toilet paper. Crafted from particle board and metal, you get a sturdy piece for the price. And rather than resting directly on the floor, the storage cabinet is slightly elevated with raised metal legs. This makes it easier to thoroughly clean your bathroom, and gives the storage solution some height, literally. It also comes with an anti-tip kit to secure it to a wall, making it even more sturdy and secure.The small storage cabinet is a functional and stylish storage option. It has a beautiful arched door design that’s a small but eye-catching detail that has an Art Deco vibe to it. However, it’s available in even more colors and designs. There are a total of seven options to choose from, and they range in style from retro to farmhouse to modern.Related: Walmart’s bestselling storage cabinet is on sale for just $58, and it provides lots of shelf spacePros and cons of the Hzuaneri narrow storage cabinetProsSlim design: The cabinet has a narrow silhouette that’s ideal for small spaces.Versatile storage: There are both open and closed shelves, with two being height-adjustable.Stylish options: The storage cabinet comes in seven colors and style options, ranging from farmhouse to minimalist to retro.ConsSmall size: Many shoppers see it as a benefit, but some reviewers said it’s smaller than they expected.Assembly: Even though it’s designed to be easy to set up, shoppers note that it comes with a lot of pieces, which can be overwhelming.”Excellent additional storage for your bathroom or bedroom. It was easy to put together [and] pretty sturdy once fully assembled,” an Amazon shopper said. They added that it’s a good height, and it offers a lot of great storage for unsightly items like toilet paper. Shop more dealsChooChoo Small Bathroom Storage Cabinet, $36 (was $40) at AmazonHoobro Small Bathroom Storage Cabinet, $40 (was $42) at AmazonKhnr 2-Tier Slim Bathroom Storage Cabinet, $32 (was $40) at AmazonGive any small space a storage makeover with the Hzuaneri Narrow Storage Cabinet, which is just $37 at Amazon.