As the United Nations General Assembly prepares to convene in New York City later this September, a fresh diplomatic controversy is brewing—not in the halls of the UN, but in the aisles of America’s favorite warehouse stores. The Trump administration is reportedly weighing a proposal to ban Iranian diplomats from shopping at big-box retailers like Costco and Sam’s Club during their visit, a move that has sparked debate about sanctions, international protocol, and even the right to bulk discounts.
According to The Associated Press, the U.S. State Department is seriously considering new restrictions that would prevent Iranian delegation members from accessing membership-only wholesale stores unless they receive explicit permission from the government. This policy, revealed in a leaked internal memo, could soon apply not just to Iranian diplomats, but to all foreign diplomats in the United States, as the State Department considers placing “terms and conditions” on club memberships for international officials.
Why target warehouse stores? As NewsNation explains, Iranian diplomats have long favored shopping at Costco and Sam’s Club during their New York visits, snapping up bulk goods at prices—and in quantities—impossible to find in their economically isolated home country. These purchases, often shipped back to Iran, provide access to everyday consumer products that are either prohibitively expensive or simply unavailable due to decades of U.S.-imposed sanctions.
This isn’t the first time such a restriction has been floated. Back in 2013, Costco barred Iranian embassy workers in Japan and the United Kingdom from its clubs, citing the Iran Threat Reduction and Syria Human Rights Act of 2012. That law requires American companies to disclose if they knowingly conduct certain activities with Iran or individuals linked to terrorism or weapons proliferation. This time, the move is being considered as part of a broader crackdown on diplomatic privileges ahead of the UN General Assembly, which opens on September 22, 2025.
For Iranian diplomats, the new proposal would add another layer to an already complex web of restrictions. As CNN notes, Iranian delegates in New York are typically limited to traveling only within a narrow corridor: two blocks between their hotel and the UN headquarters, plus the route to the airport. The proposed shopping ban would further curtail their ability to access goods and services while in the U.S.—unless, of course, they apply for a waiver from the State Department. “The diplomats would be able to apply for a waiver from the State Department to shop at these stores,” Supermarket News reported, referencing the leaked memo.
The potential ban comes at a time when the Trump administration is reviewing and, in some cases, revoking visas for other delegations as well. Palestinian leader Mahmoud Abbas and his large delegation have already been denied visas to attend this year’s high-level UN meeting—a move widely condemned as an effort to silence Palestinian voices in international forums. According to Truthout, critics argue that this is part of a broader campaign by Israel and its allies to erase Palestinian representation, regardless of the venue.
The State Department’s memo, as cited by multiple outlets, also mentions possible travel and shopping restrictions for diplomats from Sudan, Zimbabwe, and—perhaps surprisingly—Brazil. For Brazil, the specifics remain unclear. Traditionally, Brazil’s president is the first world leader to address the General Assembly, with the U.S. president following. However, political tensions between President Donald Trump and Brazilian President Luiz Inácio Lula da Silva have complicated matters, especially given Trump’s vocal opposition to Lula’s prosecution of former Brazilian President Jair Bolsonaro, a personal friend. Whether these tensions will translate into actual visa or movement restrictions for the Brazilian delegation remains to be seen.
Meanwhile, Syria’s delegation has seen restrictions eased. As CNN reports, the Trump administration recently issued a waiver for Syrian diplomats, allowing them to travel more freely in New York—an apparent gesture toward building ties with the country following the ouster of Bashar Assad and efforts to reintegrate Syria into the Middle East diplomatic fold. No such leniency appears forthcoming for Sudanese or Zimbabwean delegates, though the specific details of their potential restrictions have not been disclosed.
For Iranian diplomats, the warehouse store ban is more than just a matter of convenience. As The Associated Press points out, U.S. sanctions have long prevented ordinary Iranians from accessing many consumer goods, even when they travel abroad. Wholesale clubs like Costco offer a rare opportunity to stock up on essentials and luxuries alike—everything from electronics to groceries—at prices far below what’s available in Iran, if at all. The proposal to bar diplomats from these stores, or to require special permission, is seen by some as an extension of the broader sanctions regime, intended to limit not just the Iranian government’s access to resources, but also the personal comfort of its representatives.
Yet the move also raises questions about the United States’ obligations as the host nation for the United Nations. Under a longstanding agreement with the UN, the U.S. is generally expected not to obstruct the travel or activities of delegates from member states and non-member observers. The recent visa revocations and proposed shopping bans have prompted criticism from diplomats and international observers alike, who argue that such measures undermine the spirit of international cooperation and the neutrality of the UN’s host city.
For now, the fate of the proposed shopping ban remains uncertain. The State Department has not publicly commented on the leaked memo, and neither the Iranian nor the Brazilian UN missions have responded to requests for clarification. The timing and implementation details of any new restrictions are also unclear, leaving diplomats and observers alike in a state of limbo as the General Assembly approaches.
In the meantime, the story has sparked curiosity—and even a bit of humor—among the American public. As Supermarket News quipped, the proposal might create “a (potentially risky) opportunity for an enterprising personal shopper with a Costco card.” But for those affected, the issue is no laughing matter. The ability to shop for familiar goods in a foreign country can make a world of difference for diplomats far from home, and the loss of that privilege is yet another reminder of the high stakes and human impact of international politics.
As the world’s leaders prepare to gather in New York, the debate over shopping rights at wholesale clubs serves as a microcosm of larger tensions—between diplomacy and security, openness and control, tradition and change. Whether Iranian diplomats will be pushing Costco carts this September remains to be seen, but the controversy has already cast a spotlight on the often-overlooked intersections between geopolitics and everyday life.
