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Walmart, Target and Amazon plan how to use tariff refund windfalls
Walmart said its tariff refunds totaled about $2.9 billion, or roughly 0.5% of annual US net sales, and it plans to lower prices on grocery and general merchandise.
Yahoo Finance reports that major US retailers are receiving tariff refund checks from the federal government and are choosing different ways to deploy the cash.
As of late July, the Trump administration returned more than $100 billion to businesses after a Supreme Court ruling in February struck down tariffs imposed under the 1977 International Emergency Economic Powers Act, with Yahoo Finance noting that figure represents about 60% of the $166 billion collected under the IEEPA tariffs.
Walmart told investors it received approximately $2.9 billion in tariff refunds, around 0.5% of its annual US net sales, and plans to use the money to lower prices in categories where customers are most active, including grocery and general merchandise. The company said it lowered prices on roughly 11,000 items in the first half of the year.
Target received $994 million in tariff refunds in the second quarter and used the cash to boost margins, which Yahoo Finance says contributed $1.65 to its $4.11 earnings per share. Amazon said it received an approximate $600 million payout, with executives describing the refunds as limited due to efforts to buy ahead to avoid tariffs, and they said it will proactively issue refunds to customers only in specific traceable circumstances.