U.S. bars Iran’s diplomats from shopping at Costco without permission

A Costco Wholesale is seen July 15, 2025. (AP Photo/George Walker IV, file)

NEW YORK — The Trump administration has barred Iranian diplomats based in or visiting New York from shopping at wholesale club stores like Costco and purchasing luxury goods in the United States without specific permission from the State Department.

In notices to be published this week in the Federal Register, the department’s Office of Foreign Missions determined that diplomatic memberships in wholesale club stores as well as diplomats’ ability to buy items such as watches, furs, jewelry, handbags, wallets, perfumes, tobacco, alcohol and cars are a “benefit” requiring U.S. government approval.

However, the only country whose diplomats were specifically targeted is Iran. Stores like Costco have been a favorite of Iranian diplomats posted to and visiting New York because they are able to buy large quantities of products not available in their economically isolated country for relatively cheap prices and send them home.

The move is another step in the Trump administration’s crackdown on visas, including for leaders and diplomats seeking to serve as representatives at the United Nations. While world leaders are gathering this week for the high-profile annual meeting at the international body, the new U.S. restrictions permanently apply to any Iranian diplomats representing their country at the UN year-round.

The determinations, which were posted online Monday and to be printed Tuesday, said Iranian diplomats and their dependents must “obtain approval from the Department of State prior to: obtaining or otherwise retaining membership at any wholesale club store in the United States, to include but not limited to Costco, Sam’s Club, or BJ’s Wholesale Club, and acquiring items from such wholesale club stores through any means.”

In addition, Iranian diplomats in the U.S. must also receive permission to purchase luxury items valued at more than US$1,000 and vehicles valued at more that $60,000, said Clifton Seagroves, the head of the Office of Foreign Missions.

The items defined as “luxury goods” include watches, leather apparel and clothing accessories, silk apparel and clothing accessories, footwear, fur skins and artificial furs, handbags, wallets, fountain pens, cosmetics, perfumes and toilet waters, works of art, antiques, carpets, rugs, tapestries, pearls, gems, precious and semi-precious stones or jewelry containing them, precious metals, electronics and appliances, recreational sports articles, musical instruments, cigarettes and cigars, wine, spirits and beer.

Earlier this month, U.S. officials said they were considering the restrictions, which Seagroves signed on Sept. 16 and 18.

The Trump administration has already denied visas for Palestinian leader Mahmoud Abbas and his large delegation to attend the UN General Assembly. In addition to Iran, the administration also was considering restrictions to be imposed on delegations from Sudan, Zimbabwe and Brazil.

Matthew Lee, The Associated Press