Walmart, Target Get Billions in Tariff Refunds as Prices Stay High

Some of America’s largest retailers have received billions of dollars in tariff refunds from the federal government, but much of that money is not yet being returned directly to consumers who absorbed higher prices when the tariffs were imposed. Retailers reported more than $5 billion in refunds in earnings reports released this week alone.

The refunds follow the Supreme Court’s decision to strike down the Trump administration’s broadest tariff policy. In an August court filing, the administration said it had returned $100 billion of the roughly $166 billion in tariff revenue it expects to repay.

Major companies have begun reporting substantial refunds. In their latest earnings reports, Walmart disclosed $2.9 billion, Target reported $994 million, Home Depot received $730 million, TJX reported $331 million, Ross received $253 million and Lowe’s reported $80 million. Together, those retailers accounted for approximately $5.3 billion in refunds. Amazon previously reported receiving $600 million in tariff refunds in July, while Ace Hardware received $11.8 million in its latest quarter.

Retail executives have generally indicated that they plan to use the refunded money to strengthen their businesses rather than return the full amounts directly to shoppers. Some companies, however, have said they intend to use at least part of the funds to reduce prices.

Walmart has been among the clearest in promising consumer relief. CEO John W. Furner said the company intended to put much of its $2.9 billion refund back into pricing. Amazon has previously said it would return some tariff refunds to customers who paid import fees and use other portions to reduce prices. Best Buy CEO Corie Barry said in May that the retailer is less exposed because it directly imports only about 2% to 3% of its products, while adding that the company’s goal is to use any recovered duties to provide value to customers. Costco executives have also indicated that at least part of any tariff refund could eventually benefit shoppers.

Consumers have filed several class-action lawsuits against companies receiving tariff refunds, but none of those cases has yet reached a final resolution. Without voluntary action from retailers, consumers have limited avenues for directly recovering tariff costs.

More retailers have yet to report their latest quarterly results, including Macy’s, Dollar General, Dollar Tree, Kohl’s and Dick’s Sporting Goods. Some discount chains have previously left tariff refunds out of their earnings figures because the reimbursement process was still underway. Costco said in its May earnings call that it had only begun submitting refund claims, leaving the size of its eventual payment uncertain.

Other retailers have indicated that refunds will be used to cover rising operating expenses. Home Depot and Lowe’s executives said their refunds would help offset higher costs, including fuel. Lowe’s CEO Marvin Ellison noted that some competitors were using refunds to reduce prices and increase promotions. Target CFO Jim Lee said the company remained focused on protecting value for customers and would continue lowering prices, but did not specify whether its tariff refund would directly fund those reductions. TJX said $112 million of its refund would go toward employee compensation and bonuses, while it did not disclose how the remaining portion would be used.

The distribution of tariff refunds has also become a political issue. Sen. Elizabeth Warren, D-Mass., sent letters in August to executives at Walmart, Apple, Nike, Target and other major companies, urging them to pass tariff refunds on to consumers. Warren asked the companies to provide details about the refunds they received, tariff-related price increases and plans for returning the money to customers. She argued that consumers and small businesses had faced higher costs while corporations benefited from increased profits.

Treasury Secretary Scott Bessent pushed back against Democratic criticism Thursday, arguing that Democratic attorneys general were responsible for the lawsuits that ultimately forced the administration to return the tariff revenue. Bessent said the money had belonged to the American people while it was held in the U.S. Treasury before the court decisions required it to be refunded.

Tariffs have been a central part of President Donald Trump’s economic agenda. His signature “Liberation Day” tariffs were announced in April 2025 and later imposed on imports from nearly every country. The Supreme Court struck down those tariffs in February, ruling that Trump lacked authority to impose them under the International Emergency Economic Powers Act. Trump has criticized the ruling and subsequently introduced other tariffs to replace the invalidated measures. After the court decision, his administration initially imposed temporary 10% tariffs across the board, followed by new duties ranging from 10% to 12.5% on goods from 60 countries after the replacement tariffs expired.

Research indicates that U.S. businesses and consumers carried much of the original tariff burden. The New York Federal Reserve estimated that about 90% of the tariffs’ economic cost was borne by American firms and consumers, while an earlier survey found roughly three-quarters of businesses passed tariff costs to customers in some form. The Yale Budget Lab estimated in August that Trump administration tariffs, including duties that are not part of the current refunds, were adding about $1,100 a year to household costs. A National Bureau of Economic Research working paper published in July estimated that 26% of government tariff increases were passed through to consumers through higher prices. The New York Fed also reported that nearly half of the companies it surveyed in May expected additional tariff-related price increases.