Costco Defies Tariff Concerns But The Stock Still Slips [Video]

By Francisco Velasquez

Costco (COST-2.36%) shoppers are on a bulk-buying spree, snapping up groceries, home furnishings and electronics, as the retailer defies growing concerns over rising tariffs and living costs.

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Despite the looming threat of President Donald Trump’s U.S. tariffs, Costco’s performance underscores its strong and unique position with American consumers, particularly wealthier shoppers. Competitors like Walmart, Target, and Best Buy have warned that prices on everyday items, including fruits, vegetables, and electronics, are likely to rise.

Although Trump’s proposed tariffs have been paused – at least for now – the hikes would impose a 25% duty on imports from Mexico and Canada and 10% on Chinese goods.

In Dec. 2024, Costco CEO Gary Millerchip told investors the retailer was prepared to adapt should tariffs be imposed. “When it rains, it pours,” he said at the time, acknowledging the potential impact.

Unlike its rivals, …