Costco is facing a proposed nationwide class action lawsuit seeking refunds for customers over higher prices charged by the company due to the Trump administration’s tariffs that were subsequently ruled unconstitutional by the Supreme Court.

The lawsuit was filed by a Costco shopper in federal court in Illinois on Wednesday and seeks a declaration that the company must return to customers any refunds it receives for tariffs Costco paid under the International Emergency Economic Powers Act (IEEPA).

The suit follows the Supreme Court’s ruling on Feb. 20 which held that President Donald Trump overstepped his authority in imposing tariffs under IEEPA, as the law doesn’t grant tariff authority to the president.

Costco is among the more than 2,000 companies that have filed suits in the U.S. Court of International Trade seeking to recover tariffs they paid for imported goods. If the company receives those funds back through a refund, the lawsuit seeks to ensure those refunds are provided to customers who faced higher prices because of tariffs.

FOX Business reached out to Costco for comment.

FEDEX SAYS IT WILL RETURN ANY TARIFF REFUNDS TO CUSTOMERS, SHIPPERS WHO PAID THEM

Costco said it plans to return tariff refunds to consumers through lower prices and additional value, though the suit seeks to require consumer compensation. (David Paul Morris/Bloomberg)

“This lawsuit seeks to prevent Costco, the third-largest retailer in the world, from double recovery,” the lawsuit said. “Costco has made no commitment to return any portion of anticipated tariff refunds to the consumers who bore those costs.”

The suit added that the company has only promised “a possible future benefit to an indeterminate group of future shoppers.”

Costco CEO Ron Vachris told analysts last week that it was still unclear if or when businesses will get refunds for the IEEPA tariffs they previously paid.

Vachris indicated that if Costco does receive the funds, the company plans to channel them into lower prices and improved value for shoppers.

FEDEX SUES TRUMP ADMINISTRATION FOR FULL TARIFF REFUNDS AFTER SUPREME COURT RULING ON IEEPA

FedEx, which has also filed suit in the Court of International Trade to recover tariff refunds, is facing a similar class action lawsuit that was filed in late February by shippers who paid higher prices due to the tariffs.

Before the class action lawsuit was filed, the company said in a statement that, “If refunds are issued to FedEx, we will issue refunds to the shippers and consumers who originally bore those charges. When that will happen and the exact process for requesting and issuing refunds will depend in part on future guidance from the government and the court.”

The class action lawsuit claims that FedEx’s promise wasn’t legally enforceable and seeks to ensure shippers and consumers receive the additional funds they paid due to the tariffs.

HOW SHOULD BUSINESSES APPROACH TARIFF REFUNDS?

Tariffs are taxes on imports paid by the importer, who often passes on some or all of the higher cost onto consumers through higher prices. (Brandon Bell/Getty Images)

The Supreme Court’s ruling sent the case back to lower courts, where it’s possible that the government could reach an agreement with the courts over a format for providing refunds to tariff payers.

Existing avenues to pursue tariff refunds exist through the U.S. Court of International Trade, where thousands of companies have filed suit to recover those funds.

A recent study by the Federal Reserve Bank of New York found that U.S. businesses and consumers bore 86% of the tariff burden, while foreign exporters bore 14% as of November 2025. 

The New York Fed’s researchers found that the share borne by U.S. businesses and consumers declined over the year from 94% in the January through August period to 92% in September and October.

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Those findings are similar to those contained in another analysis by the nonpartisan Congressional Budget Office (CBO), which noted in its 10-year budget and economic outlook that foreign exporters were absorbing about 5% of the tariff costs with the remaining 95% falling on U.S. firms and consumers.

Reuters contributed to this report.

As border controls tighten and environmental scrutiny increases on supply chains, one compliance area continues to trip up experienced exporters: wood packaging.

While commercial documentation often receives most of the attention during shipment preparation, the physical packaging itself — pallets, crates, and dunnage — is frequently what triggers inspection holds at borders. When solid wood packaging is not ISPM 15 compliant, the result is not just a compliance query. It can mean delays, rework, and avoidable operational costs that no amount of correct paperwork can fix.

Pallet2Ship, a UK-based pallet shipping platform that has worked with thousands of exporters since 2009, says the problem is rarely that businesses do not know the rules exist. It is that the practical application gets missed in everyday warehouse operations.

“In day-to-day operations, solid wood packaging is one of the most common inspection triggers,” says a spokesperson for Pallet2Ship. “Compliance sits right at the point where your packing decisions, carrier handover, and border clearance all meet. When any of those three slip, you can end up with a shipment sitting in a depot while marks are verified or packaging is reworked.”

The Biosecurity Stakes of Wood Packaging

ISPM 15 (International Standard for Phytosanitary Measures No. 15), developed under the International Plant Protection Convention, exists for a straightforward reason: to stop invasive pests spreading across borders inside untreated timber.

Any solid wood packaging thicker than 6mm used in international trade must be heat-treated, or treated using an approved alternative method, and stamped with an official IPPC mark showing the treatment provider, country code, and treatment type.

On paper, it is simple. In practice, failures happen at the margins — and they happen often.

The Treatment Shift: From Methyl Bromide to Heat

One of the biggest changes in recent years has been the move away from Methyl Bromide fumigation.

MB was widely used for decades but is now heavily restricted globally due to its environmental impact. The industry has shifted toward cleaner and more sustainable treatment methods:

Heat Treatment (HT) — Timber heated to a core temperature of 56°C for at least 30 minutes. This is now the standard method and accounts for the vast majority of compliant pallets in circulation.

Dielectric Heating (DH) — Microwave or radio-frequency treatment, less common but recognised under authorised schemes.

Sulfuryl Fluoride (SF) — A fumigation alternative used in specific regulated contexts, mainly for quarantine or pre-shipment situations.

For most exporters, the practical default is heat-treated pallets stamped with “HT” on the IPPC mark. It is reliable, widely accepted, and avoids much of the environmental baggage associated with older fumigation methods.

Post-Brexit Confusion: What Actually Applies Where

This is where a lot of UK exporters still trip up.

ISPM 15 applies to solid wood packaging in shipments between Great Britain and the European Union. It also applies to shipments from Great Britain to Northern Ireland, because Northern Ireland follows European Union plant health rules under the Windsor Framework.

The requirement does not apply to shipments from Northern Ireland to Great Britain, and wood packaging moving from Northern Ireland to the European Union is treated as intra-European Union trade, so ISPM 15 is not required on that route.

Many exporters assume that because some movements feel “domestic” in practice, ISPM 15 does not apply. That assumption is wrong and can cause problems at consolidation hubs or during carrier inspections.

Another mistake is assuming that because some road freight shipments to the European Union seem to pass without inspection, compliance is optional. Enforcement intensity does vary — by route, carrier, commodity, and inspection point — but the underlying requirement does not change.

For higher-risk destinations like Australia, New Zealand, and the United States, enforcement is stricter. Non-compliance on those lanes more frequently results in holds, rework, and in some cases refusal or destruction of packaging.

Common Operational Failure Points

Pallet2Ship’s detailed compliance guide identifies these as the top four failure points exporters should control:

The 6MM Misunderstanding

ISPM 15 applies to solid wood components thicker than 6mm. Thinner wood is generally exempt — but standard pallets, crates, and timber bracing are almost always well over this threshold. The exemption is relevant for thin backing boards or slats, not for pallets themselves.

The Repair Trap

A pallet can start life fully compliant, stamped and treated correctly. Then someone in the warehouse patches a broken board with a scrap piece of untreated timber. The original stamp is still there, but the pallet is now non-compliant. Ad-hoc repairs using unknown timber invalidate compliance instantly.

Stamp Visibility

IPPC marks must be visible on at least two opposite sides of the pallet. If you wrap the pallet tightly and cover the stamps with stretch film or apply shipping labels over them, an inspector cannot verify compliance. If they cannot see it, they will often treat it as missing.

Last-Minute Dunnage

Everything is packed correctly on a compliant pallet. Then at the last moment, someone adds an offcut of timber to stop something shifting in transit. That piece of wood is now part of the packaging, and if it is not ISPM 15 compliant, the whole shipment can be flagged.

Most of these problems are not deliberate. They happen because decisions are made quickly on the warehouse floor, often by people focused on getting the shipment out rather than checking compliance details.

Exemptions and Alternatives

For businesses that want to reduce wood-related compliance exposure altogether, there are alternatives.

Processed wood products such as plywood, OSB, MDF, and particle board are generally exempt from ISPM 15 because the high-heat manufacturing processes involved in their production destroy pests. Presswood or wood-fibre pallets fall into the same processed wood category and are also outside the scope of ISPM 15.

Plastic and metal pallets also fall outside the scope of the standard because they are not made from raw solid wood.

For some trade lanes, switching to these materials can simplify border compliance while still meeting load-bearing and sustainability requirements.

The trade-off is usually cost. Processed wood and plastic pallets tend to be more expensive upfront than standard heat-treated timber pallets, so the decision comes down to shipment volume, destination risk, and whether the cost of potential delays outweighs the cost of switching materials.

A Practical ISPM 15 Compliance Framework for Exporters

Pallet2Ship has published a detailed ISPM 15 pallet compliance guide that breaks down the controls exporters should build into daily operations. The ten-point checklist covers everything from supplier verification to pre-dispatch photo evidence.

The core advice is straightforward:

• Segregate export pallets from domestic pallets in the warehouse. Do not let them mix.
• Verify stamps before wrapping. Check that the IPPC mark is legible on two opposite sides and includes a valid country code, facility code, and treatment code, usually HT.
• Control all timber additions. Any dunnage, bracing, or blocking added during packing must also be ISPM 15 compliant.
• Take photos before collection. A quick snapshot of the pallet from multiple angles provides evidence of compliance if a query arises later.
• For high-risk routes, use new pallets. Reused pallets can be compliant, but faded marks, hidden repairs, and contamination are more common. For Australia, New Zealand, the United States, or high-value time-sensitive shipments, new heat-treated stock removes uncertainty.

None of this is complicated, but it does require discipline. The best time to catch an ISPM 15 issue is before the vehicle leaves your loading bay. Once it has been collected, your options narrow significantly.

Building Compliance Into Operations, Not Fixing It Later

ISPM 15 compliance is not a paperwork exercise you can sort out retrospectively. It is a warehouse discipline that needs to be built into everyday packing routines.

Treating pallet compliance as part of standard operational control, rather than something to fix after collection, reduces disruption, protects margins, and keeps cross-border shipments moving smoothly.

For businesses moving goods internationally, it is not about ticking a regulatory box. It is about avoiding preventable delays that cost time, money, and customer confidence.

Pallet2Ship’s full ISPM 15 compliance guide, including the practical ten-point export checklist, is available on its website.

A long-stalled plan to redevelop a deteriorating New Jersey shopping center is once again before local officials.

The Raritan Borough Planning Board recently reviewed a new site plan application for Raritan Lofts, which calls for a five-story, mixed-use building that would replace much of the largely vacant Raritan Mall in Somerset County, roughly 45 miles southwest of New York City.

Submitted by Raritan Mall Urban Renewal LLC, the proposal outlines the demolition of the aging strip mall and the construction of a 70-foot-tall building featuring 276 rental apartments and 20,000 square feet of ground-floor retail space, according to planning documents.

The project would include 42 affordable rental units.

A view of the deteriorating Raritan Mall in Raritan, N.J. (Google Maps)

MAJOR RETAILERS ARE FLEEING ANOTHER POPULAR MALL

A separate one-story building on the property would remain and be converted into retail space.

The redevelopment marks the latest effort to revive the 10.88-acre site, which has struggled since its anchor tenant, Stop & Shop, closed in 2016, according to NJ.com.

The shopping center is now largely vacant. A 2022 preliminary study described the site as “mostly abandoned” and “dilapidated,” citing vandalism and flood damage, the local outlet reported.

The proposal, submitted by Raritan Mall Urban Renewal LLC, calls for constructing a 70-foot-tall building featuring 276 rental apartments and 20,000 square feet of ground-floor retail space.  (Raritan Borough Planning Board)

SHOPPING MALLS BETTER ADAPT TO MODERN TIMES TO AVOID TOTAL DEATH, SERIAL ENTREPRENEUR SAYS

The hearing represents the newest push to revive a redevelopment plan that has stalled for years.

After the Raritan Borough Council rejected an earlier redevelopment plan, the mall’s owner filed a lawsuit in August 2024. The $100 million suit alleged the vote involved a conflict of interest but was withdrawn in February 2025, NJ.com reported.

The Raritan Mall’s decline also mirrors broader challenges facing traditional shopping centers nationwide. 

TRUMP SAYS AMAZON ‘DESTROYING’ SHOPPING MALLS, HOLLOWING OUT TOWNS

The Raritan Mall’s decline mirrors broader challenges facing traditional shopping centers nationwide.  (iStock)

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Even before the COVID-19 pandemic, malls were losing ground as online retailers such as Amazon drew customers away from brick-and-mortar stores. 

Lockdowns then accelerated the decline by keeping shoppers home. Economic pressures stemming from inflation made matters worse with households tightening their budgets and spending less on discretionary items. 

FOX Business reached out to The Raritan Borough Planning Board and Raritan Mall Urban Renewal LLC for comment.

FOX Business’ Daniella Genovese contributed to this report.

Success does not always follow a straight line. For Brian Hagerty, it has been built shift by shift, team by team, and lesson by lesson.

From growing up in Monroe Township, New Jersey, to leading multiple restaurant locations as a district manager, Hagerty’s career has centered on one core idea: take care of people, and the rest will follow.

“I learned early on that service is about respect,” he says. “If you respect your team and your customers, you can build something strong.”

This is the story of how he brought that idea to life.

Early Life in Monroe Township, New Jersey

Brian Hagerty was raised in Monroe Township by his parents, Mary Ann and Stuart Hagerty. His early years were active and structured. He played soccer and ran track in high school. Sports taught him discipline and teamwork.

“Track showed me that results come from daily effort,” he says. “You don’t win on race day. You win in practice.”

Outside of sports, music became another outlet. He learned to play guitar and piano. That creative side would later help him connect with people from all walks of life.

After graduating from Monroe Township High School, he attended Coastal Carolina University. During college, he supported St. Jude Children’s Research Hospital, an experience that shaped his view of responsibility and community.

“It felt important to give back,” he says. “Even small actions matter.”

How Brian Hagerty Built Leadership Skills at Waffle House

Hagerty’s career in the service industry began at Waffle House. What started as a job became a proving ground.

He worked his way up to district manager. In that role, he oversaw multiple locations. He focused on operations, training, and culture.

“My job wasn’t just about numbers,” he says. “It was about building teams that could run strong without me standing there.”

He believed that consistency was the key to scale. That meant clear expectations. Strong associate training. And steady communication.

“If you train people the right way from day one, you don’t have to fix problems later,” he explains.

Hagerty worked to maintain standards across stores. He developed associates into leaders. He emphasized accountability but also support.

“People perform better when they feel prepared,” he says. “Training is not an expense. It’s protection.”

His management style was direct but steady. He valued systems. But he also valued people.

From District Manager to Professional Bartender

After his time in upper management, Hagerty shifted into bartending. It may seem like a step back on paper. In practice, it was a shift in focus.

Bartending allowed him to work face-to-face with customers again. It also let him apply his leadership mindset in a different way.

“Bartending is operations in real time,” he says. “You manage speed, quality, and personality all at once.”

He built a reputation as a top-tier bartender. Not because of flash. But because of consistency.

“You don’t need tricks,” he says. “You need timing and attention.”

The move showed his flexibility. He understood that leadership is not about title. It is about execution.

Lessons in Service Industry Management and Training

Over the years, Hagerty has developed clear views on service industry success.

First, culture drives performance.

“If your associates feel ignored, your customers will feel it too,” he says.

Second, systems reduce chaos.

“Busy shifts don’t scare me,” he says. “Disorganized shifts do.”

Third, leadership requires presence.

“When you’re in management, you can’t hide in the office,” he says. “You have to be on the floor.”

These ideas are not abstract. They came from years of long hours, high-pressure shifts, and real-time problem solving.

He believes strong training creates freedom. When associates understand standards, managers can focus on growth instead of constant correction.

“Maintenance is part of leadership,” he says. “You don’t just train once and walk away.”

Life Outside of Work: Family, Nature, and Music

Outside of the service industry, Hagerty focuses on family and balance. He enjoys nature and spending time at the beach. Music remains part of his life. So does fatherhood.

“Taking care of my children is the most important job I have,” he says.

The structure he learned from sports and the patience he developed in management now carry into his personal life.

He believes in showing up consistently. At work. At home. In the community.

What’s Next for Brian Hagerty?

At this stage, Brian Hagerty is not defined by a job title. He is defined by experience.

His career shows that leadership is portable. The skills built in one environment can transfer to another. Systems thinking. Team development. Operational awareness. Customer focus.

“I’ve always tried to bring big ideas down to simple actions,” he says. “Train well. Communicate clearly. Show respect.”

Those ideas may sound straightforward. But in fast-paced service environments, they are often the difference between chaos and control.

Brian Hagerty’s story is not about hype. It is about steady growth. About learning how to lead. About understanding that success is built through people.

And in the service industry, people are everything.

So let me get this right. After every Democrat in the House and Senate who voted against One, Big, Beautiful Bill — and therefore promoted a roughly $5 trillion tax hike — now a couple of presidential wannabees, like Senators Cory Booker and Chris Van Hollen, are surfacing plans that would end most income taxes for middle-class Americans, this according to a Wall Street Journal news story. The two men have somewhat differing plans, but basically, as I understand it, they would be raising the standard deduction and some other credits, so the first $75,000 of income would not be taxable.

So, are the Democrats possibly rediscovering tax cuts? Is the ghost of John F. Kennedy, who was the last Democratic president to lower tax rates and usher in supply-side economics, is the Kennedy ghost suddenly hovering over their shoulder? Are they admitting that President Trump was right as he walloped them in 2024 with across-the-board tax cuts, no tax on tips, or overtime, big breaks for seniors, et cetera. 

Now I don’t agree with the specifics of the Democratic plan, we’ll talk about it in a minute. But even the merest hint that Democrats believe lower taxes, at least for some people, are better than higher taxes for everybody, might be a good thing. Just maybe.

Now, what Booker and Van Hollen are doing is basically raising the standard deduction on middle-class earners somewhere around $75,000 to $100,000 a year. I’m oversimplifying, but that’s the gist of it. Now here’s the problem, they want to significantly raise taxes on successful earners, upper end earners.

According to the Journal article, Mr. Van Hollen calls for a surtax that climbs as high as 12 percent above existing taxes, which would drive the top rate to nearly 50 percent, or if you live in New York or California, you’d be taxed in the mid 60s percentile. Mr. Booker would raise the top rates from 35 percent and 37 percent into a new 41 percent and 43 percent brackets. 

Confiscatory tax rates like these would squelch work and investment, leading to a depressed economy, higher unemployment, and by the way even larger budget deficits. I don’t care how many people the senators want to shield from income taxes, turning around with punitive tax rates on successful entrepreneurs and wealthy individuals is a nonstarter.

Supply-side economics as Kennedy or Art Laffer would tell you, suggests that when you tax something more you get less of it. Punish success and prosperity, you’ll get less success and prosperity. But if you tax something less, you will encourage work effort and risk taking. And that’s the ticket to prosperity.

As Kennedy said many times, a rising tide will lift all boats. There’s no need to punish some while rewarding others in some kind of bizarre socialist redistribution scheme that has been tried many times before and always failed. But you know what folks? At least there are a couple of Democratic senators who don’t think tax cuts are dirty words. So, is JFK having a comeback?

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