Is a Costco Membership Still Worth It If Tariffs Increase Prices?
Written by
Stacy Sare Cohen
Edited by
Zuri Anderson
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With Trump’s sweeping tariffs impacting everything from avocados to iPhones, many shoppers are wondering if a Costco membership still makes financial sense.
The multi-national, membership-only wholesale club retailer has had a reputation for keeping prices low, even during difficult economic times. For example, during the pandemic, the company purchased shipping containers to avoid the global shipping crisis. Costco CEO Ron Vachris told Entrepreneur that the company takes steps to keep costs low, protect member value, and offer savings across a wide range of goods, even in higher-cost environments.
Vachris added that only one-third of Costco’s U.S. sales come from imported goods, with less than half of those imports coming from China, Mexico and Canada, the countries targeted by Trump’s tariffs. With these economic pressures happening, is having a Costco membership still worth it?
Costco Memberships at a Glance
Costco offers two types of memberships for households and businesses: Gold Star and Executive. The Gold Star membership costs $65 per year and includes access to warehouses and online shopping, as well as savings on bulk purchases, gas, eyewear, prescriptions, insurance, and more.
The Executive Membership, priced at $130 annually, includes all the benefits of the Gold Star membership plus additional perks. Members earn a 2% annual reward up to $1,250 on eligible Costco purchases and services such as Costco Travel, which offers savings on booking vacations, rental cars and more.
Devin Ramos, founder and CEO of Simplifi Real Estate, said an Executive Membership is worth it when tariffs raise prices.
“During financial uncertainty, Costco’s in-store Kirkland products (20% lower on average than national brands) are even more desirable; Executive members qualify for additional discounts on Costco services like travel, insurance, and financial services that offset inflationary forces,” he explained.
Ramos added that when tariffs on building materials increased in 2018 for his real estate business, his Costco Executive membership rewarded him roughly $740 in bulk purchasing and cash back on remodeling supplies on more than 80 property deals.
“The variation in value between membership tiers grows as expenses rise, so the upgraded version is more economical,” he said.
For some households, a Gold Star membership is the wiser choice if they don’t spend enough at the store to justify rewards.
Another Incentive: Costco Anywhere Visa Card
Costco members can earn additional benefits and cash-back rewards, making a Costco membership worth it, if they qualify for the Costco Anywhere Visa Card, if they pay their bill on time. The card includes the following perks and rewards.
- Waived annual fee for paid members
- Unlimited cash-back rewards (see terms and conditions)
- 5% cash back on Costco gas, 3% cash back on dining and eligible travel purchases
- 1% on other purchases.
It’s worth noting that there is no sign-on bonus, and cardholders only receive rewards once a year, according to CNBC.
Based on our research, a Costco membership is worth it, even if tariffs increase prices. If you’re considering joining, you can use the calculator on the membership page to estimate your annual spending compared to savings to know if a membership is right for your household.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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