Costco Wholesale (COST) Plunges 3.32% Amid Trump Tariff Fears

On April 3, 2025, Costco Wholesale's stock experienced a significant drop of 3.32% in pre-market trading, reflecting investor concerns and market volatility.

One of the primary factors contributing to the decline in Costco's stock price is the recent announcement by President Donald Trump regarding sweeping tariffs on major trade partners. The imposition of a 10% baseline tariff across all countries, with higher rates for certain partners, has sparked fears of a global economic slowdown. This move is part of a broader trade war that includes plans to impose a 25% tariff on all foreign-made vehicles, which could significantly impact Costco's supply chain and operational costs.

Additionally, the tariffs on steel and aluminum, which took effect on March 12, 2025, have added to the uncertainty in the market. These tariffs could lead to increased costs for Costco, as the company relies on imported goods for a significant portion of its inventory. The potential for higher prices and reduced consumer spending due to the tariffs has raised concerns among investors about Costco's future profitability.

Furthermore, the announcement of a "secondary tariff" on Venezuela, which will take effect on April 2, 2025, has added to the market's jitters. This tariff will affect any country that buys oil or gas from Venezuela, potentially disrupting global trade and supply chains. The uncertainty surrounding these tariffs and their potential impact on Costco's operations has contributed to the stock's decline.