Free daily briefing on global business news.
Walmart, e.l.f. Beauty, and Tractor Supply are among companies directing billions in refunds toward lower prices rather than profits
Kevin Carter/Getty Images
Major retailers and consumer goods companies are directing tariff refund payments toward price cuts as inflation-fatigued shoppers pull back on spending, according to The Wall Street Journal. The refunds trace back to a Supreme Court decision earlier this year holding that the International Emergency Economic Powers Act did not give President Donald Trump authority to impose those tariffs, an outcome that set off more than $160 billion in payments back to importers.
Walmart $WMT said it rolled back prices on 11,000 items, including ground beef, using roughly $2.9 billion in tariff refunds. Chief Financial Officer John David Rainey said on an earnings call that shoppers began making visible spending trade-offs in June as gas prices climbed above $4 a gallon. The company said the price impact for consumers would be felt in the current fiscal third quarter.
