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Tariff refunds are hitting retailers' wallets. Here's what they're doing with the money.
Yahoo Finance • • business
Key Points:
- Major U.S. retailers like Amazon, Target, and Walmart have received billions in tariff refunds following a Supreme Court ruling that struck down certain tariffs imposed under the 1977 IEEPA.
- Walmart plans to use its $2.9 billion refund to lower prices on popular items, while Target used its $994 million refund to boost margins and cut prices on over 10,000 items.
- Amazon, receiving about $600 million, is issuing refunds directly to some customers who were charged import fees and plans to lower prices with remaining funds.
- Home Depot used $685 million of its $730 million refund to offset higher costs and improve margins, whereas Lowe’s is still deciding how to best use its $80 million refund to benefit customers without heavy promotions.
- Retailers face ongoing uncertainty around trade policy but have developed strategies over the past year to manage tariffs and supply chain challenges effectively.
