While Most CEOs Cry Like a Baby… Costco Quietly Unleashes a Savage Plan to Beat Trump’s Tariffs

If you’ve watched a Fortune 500 CEO on CNBC lately, you’d think they were auditioning for a soap opera with how much they’re crying. “Tariffs are hard,” they moan. “We’re doing everything we can.”

But not Costco. No, Costco’s not playing victim. They’re doing what your cheap uncle Gary does when beer goes up a buck… finding a way to not pay it (I can’t be the only one with an uncle like that).

Let’s set the stage for how we got here. President Trump woke up one morning in the White House, combed his luscious blonde hair and said, “You know what this economy needs? More tariffs.” So in early March, he hiked the tariff on Chinese imports from 10% to 20%, ordered 25% tariffs on Mexico and Canada, and basically declared economic war on every country that sells the U.S. cheap stuff.

Most U.S. retailers did the usual… warn customers, issue vague press releases, maybe “restructure” some middle managers. But Costco picked up the phone, called their Chinese suppliers, and said: “You’re eating this cost, or we’re eating you for lunch.”

Now I can’t give them too much credit… Costco isn’t the only one pulling this move. Walmart tried the same “Hey buddy, lower your prices or else” strategy. But that blew up BIGLY. Chinese state media clapped back, calling Walmart’s request “unreasonable” and accusing them of disrupting fair trade.

Costco on the other hand, is flying a little lower under the radar. No massive expansion in China, just 7 warehouses over there (compared to 600+ in the U.S.). That means less leverage for Beijing, more room to maneuver.

They’ve been quiet, tactical. But make no bones about it… they’re definitely pushing suppliers to absorb the tariffs. One supplier told the Financial Times, “You’re either screwed or screwed.” Which honestly feels like a deleted lyric from a Taylor Swift breakup song.

Roughly one-third of Costco’s U.S. sales come from imported goods, with about half of those from China, Mexico, and Canada… AKA the countries currently getting unlimited tariff knuckle sandwiches. That’s a lot of Kirkland-branded everything at risk of getting more expensive.

And Costco knows its whole appeal is value. You’re not going there for the ambiance. You’re going for 40 pounds of peanut butter for $8.99 and footlong hotdogs for $1.50.

So when CFO Gary Millerchip said “When it rains, it rains on everybody,” he wasn’t being poetic… he meant Costco would do whatever it takes to keep the price of toilet paper from hitting double digits. That includes strong-arming suppliers and shifting where they source their goods.

While most Fortune 500 CEOs are holding press conferences that feel more like therapy sessions, Costco is taking the “shut up and adapt” route.

Is it controversial? Sure. Is it effective? Also yes.

PS: Recently, I broke down a stock that both Nancy Pelosi and Cathie Wood bought at the same time… but here’s the thing: it was only available for premium members.

Not only did I reveal the stock, but I also dissected Nancy’s trade structure, proving she’s in it for the long haul. If you weren’t a premium member, you missed the breakdown on why her entry signals serious conviction… the kind of insight that separates smart traders from the ones just chasing headlines.

If you want real stock picks and trade ideas every single day—not just the surface-level news everyone else sees… you need to check out our premium membership. We dig through SEC filings and insider trades daily, flagging the best opportunities. And when we find a can’t-miss trade, we break it down in a full write-up… so you know exactly what’s happening and why it matters.

Don’t miss the next one. Click here and become a premium member today.

Stock.News does not have positions in companies mentioned.