Supreme Court Tariff Ruling Clouds Costco Refunds; Analysts Eye Call Spread
The Supreme Court’s 6-3 decision narrowed presidential tariff authority, raising doubts over duty refunds that dozens of retailers, including Costco, had already sought on steel and aluminum imports. Separately, technical analysts highlighted Costco’s breakout above its 50-day moving average and recommended a defined-risk call option spread to leverage further upside.
1. Supreme Court Decision and Tariff Authority
In a 6-3 ruling, the Supreme Court curtailed the president’s power under Section 232 of the Trade Expansion Act to impose broad tariffs, casting uncertainty on existing duties imposed since 2018. This precedent may delay or reduce refunds for companies that paid steel and aluminum tariffs.
2. Pre-Ruling Refund Filings by Retailers
Costco joined dozens of other firms in filing for tariff refunds before the decision, arguing they overpaid duties on key imports. These collective claims represent relief efforts estimated in the low-billion-dollar range across the retail sector.
3. Bullish Options Strategy on Costco Stock
With Costco shares surging past their 50-day moving average, market technicians recommended a defined-risk call option spread to capture potential gains. The strategy limits downside while offering upside exposure if the stock maintains its momentum into the coming quarter.