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Walmart Target get tariff refunds
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Walmart received $2.9 billion in tariff refunds and used some to cut prices. Target got $994 million, doubling its operating income to $2.6 billion.
Background
The refunds stem from a Supreme Court decision in February that struck down tariffs imposed under the International Emergency Economic Powers Act. The government has paid back $100 billion in 'Liberation Day' tariff refunds to businesses. Retailers like Walmart and Target are using these windfalls to lower prices for consumers strained by inflation and higher fuel costs.
How it unfolded
- Feb 2026US Supreme Court strikes down tariffs imposed under the International Emergency Economic Powers Act, paving the way for refunds.
- Aug 19, 2026Target reports Q2 operating income of $2.6 billion, including a $994 million tariff refund benefit, and raises annual forecast.
- Aug 20, 2026Walmart announces it has received nearly $3 billion in tariff refunds and will use some for price cuts; raises guidance.
Who’s saying what
- Walmart
- Walmart says it will use refunds for 'customer experience and price investments,' prioritizing price cuts.
- Target
- Target says it has reduced prices on more than 10,000 items in the last year, partly thanks to refunds.
- Lawmakers
- Members of Congress are pushing for wider distribution of refunds to consumers who shouldered the tariff burden.
- Caution
- Some companies like Apple have not promised to share refunds with customers, raising questions about consumer benefit.