Walmart announced this Thursday that it will allocate the 2.9 billion dollars received from tariff refunds to lower prices for its customers, a promise that comes amid a challenging economic environment for American consumers.
The financial director of the chain, John David Rainey, confirmed during the second quarter fiscal earnings call that the company has received "substantially all" of the funds it was eligible for and that these will be directed towards discounts on food, general merchandise, consumables, and fashion.
The promise of lower prices
Walmart's CEO, John Furner, was direct about the situation of his shoppers:
"Customers tell us that they still feel some pressure. Having the best prices on a basket of products helps us continue building trust with our customers and partners, helping them save money at a time when many households are carefully managing their budgets."
Rainey, for his part, emphasized the company's strategic commitment: “We are investing heavily in pricing because customers need it and because we believe it drives long-term market share gains.”
In the second quarter, Walmart implemented more than 11,000 temporary price reductions —known as rollbacks— compared to 7,200 in the previous quarter. In July, the chain had already lowered the price of more than 250 items, including a pound of ground beef, which decreased by 11.9%, from $6.74 to $5.94.
The analyst Neil Saunders from GlobalData Retail warned in statements to that the reductions will focus on essential items.
“This will help, but it will not bring prices back to 2019 levels nor create dramatic reductions,” he stated.
The origin of refunds
The funds come from the tariffs imposed by the Trump administration in 2025 under the International Emergency Economic Powers Act (IEEPA).
The U.S. Supreme Court ruled those tariffs illegal in February of this year, by a vote of six to three, determining that the president exceeded his constitutional authority by imposing them without Congressional approval.
After the ruling, the government implemented a reimbursement system for over 330,000 affected importers.
As of July 31, the Executive had already returned approximately $100 billion, according to a court document from the Office of Customs and Border Protection.
Walmart's refund is the largest reported by a U.S. company to date.
Following them are Home Depot with 730 million dollars, Target with 994 million, TJX —the parent company of TJ Maxx, Marshalls, and HomeGoods— with 331 million, and Lowe's with 80 million. Apple, Nike, Amazon, and FedEx have also reported returns in their recent results.
Mixed results and pressure on the consumer
Walmart's quarterly results presented a contradictory picture.
The net income reached $6.4 billion, and operating income rose by nearly 30% compared to the same period last year, partly driven by refunds.
However, comparable store sales in the U.S. grew by only 2.6%, the slowest pace in six years, as reported by NBC News.
The company's shares fell by 9% following the release of the results, and the company has lost more than 20% since its peak in May, which has removed it from the exclusive group of companies valued at over one trillion dollars.
Rainey attributed the slowdown to the rise in fuel prices resulting from the war between the United States and Israel against Iran
"It can be seen month by month in the last quarter when fuel prices rose and surpassed four dollars, and perhaps there is a psychological impact in that, as consumers are making decisions."
Regular gasoline increased from $2.98 per gallon before the conflict to $4.10 this Thursday, according to the American Automobile Association (AAA).
Walmart estimates more than $2 billion in additional costs due to the rise in fuel prices during 2026, making the commitment to low prices a strategy for both customer loyalty and competitive survival in an increasingly pressured market.
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