Walmart has received nearly all of the $2.9 billion in tariff refunds it was eligible for, and the retail giant says its customers will benefit through lower prices.
“We’re investing heavily in price because customers need us to and because we believe it drives market share gains over time,” Walmart CFO John David Rainey said in the company’s quarterly earnings call Thursday.
Walmart and other businesses that paid tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA) are receiving refunds after the Supreme Court struck down the levies. So far, the federal government has refunded about $100 billion in IEEPA tariffs out of an estimated $166 billion owed, leaving roughly $66 billion still to be reimbursed.
Walmart said it plans to use the tariff refund to invest in lower prices, particularly on groceries and general merchandise, as consumers continue to seek relief from elevated prices. The company said customers should begin seeing the impact of those investments in the third quarter.
Walmart has historically proved resilient during periods of economic uncertainty and high inflation, when consumers often turn to lower-priced retailers and cheaper brands. The company appears to be leaning into that advantage as consumers continue to grapple with elevated prices.
“We’re investing in prices because customers are looking to us for value,” the company added in a statement.
The announcement follows a round of price cuts the retail giant recently rolled out.
“This summer, we’re making even more investments in price, with thousands of Rollbacks across the products customers are shopping for most, including beef, fresh produce and beverages, grills, pools, toys and summer fashion apparel,” said Walmart executive Julie Barber.
The cuts included fresh ground beef falling from $6.74 to $5.94 per pound, 24-packs of Coca-Cola dropping from $14.97 to $9.97, and bags of red cherries falling from $11.18 to $5.63, among other discounts.
President Trump took credit for Walmart’s price cuts in July, saying the retailer had lowered prices at his administration’s request to celebrate America’s 250th birthday.
“Great news! I have just been informed that one of the biggest, best, and smartest retailers in America, Walmart, will be lowering prices, by a lot, at my Administration’s request to celebrate our great Country’s 250th birthday,” Trump said.
Walmart’s announcement of the summer rollbacks did not mention the Trump administration or attribute the price cuts to a request from the White House.
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