Costco and Nintendo Cash in on Tariff Refunds as Trump-Xi Summit Closes
Two major consumer brands are putting IEEPA tariff refunds to work. Costco posted a profit surge and beat earnings expectations this week, with the tariff refund cited as a meaningful contributor to its bottom line, according to QZ. Meanwhile, Nintendo launched what it is calling a "Customer Appreciation Sale," partly bankrolled by its own IEEPA refund windfall, according to Leyton USA. The moves signal that companies are increasingly treating the post-Learning Resources refunds as a strategic financial tool rather than a one-time accounting event — using the cash either to shore up margins or win back customers.
On the diplomatic front, President Trump and Chinese leader Xi Jinping wrapped up a two-day summit in Washington on Friday, according to The Hill. The meetings at the White House covered trade and other bilateral concerns, but the warm reception given to Xi is drawing friction from some Republican lawmakers who are watching economic pressures mount ahead of the November midterms. The interplay between U.S.-China relations and ongoing tariff policy remains a central concern for businesses still navigating the post-ruling refund and compliance landscape.
In a separate legal development with implications for American technology firms, the U.S. Court of Appeals for the D.C. Circuit ruled 2-1 in favor of the Trump administration's decision to blacklist AI company Anthropic, allowing the Pentagon to label the firm a supply chain risk, according to The Hill. Anthropic had challenged the designation, but the court rejected that challenge. The ruling reinforces the administration's broad latitude to restrict access for firms it deems security concerns — a posture that could have downstream effects on how tech companies operating in sensitive sectors approach government contracting and trade compliance.
On the political and social side, Defense Secretary Pete Hegseth used a Friday address to urge U.S. service members and their families to register and vote in the 2026 midterms, noting that roughly 300,000 troops failed to cast ballots in the last election cycle, according to The Hill. Critics are likely to question the appropriateness of a cabinet official encouraging political participation from active military personnel ahead of a competitive election season.
What to Watch: Keep an eye on whether additional large retailers and consumer brands announce refund-linked promotions or investor disclosures in coming weeks — Costco and Nintendo may be early movers in a broader trend. On the legal side, the Anthropic blacklisting ruling could face an en banc challenge or a petition to the Supreme Court, and any such filing would carry implications for how national security designations interact with trade and technology policy. The Trump-Xi summit communique, expected in the days ahead, may also contain language relevant to tariff negotiations and the status of any future IEEPA actions targeting Chinese goods.
— The Tariff.news desk