Walmart gets a .9 billion tariff refund after paying import tariffs in 2025 and 2026. The retailer plans to use the money to cut prices and invest in stores.

Updated on: Aug 20, 2026, 20:50:46 IST

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Walmart has reported a massive $2.9 billion tariff refund, making it the largest tariff refund reported by a major US company so far. The money is being returned to Walmart for tariffs it paid on imports during 2025 and early 2026. Walmart has already received most of the $2.9 billion refund. The company said it is eligible to receive about $2.9 billion in total refunds from the US government.

The refund comes as Walmart reported strong overall financial results for the quarter ending July 31, 2026. Walmart earned $6.4 billion in net income during the three-month period. The profit was better than the company's earlier guidance, and Walmart also increased its forecast for the full year, according to CNN. However, Walmart's US store sales were weaker than investors expected. Sales at US stores, excluding fuel, increased 2.6% during the quarter. That was much lower than the 4.6% growth recorded a year earlier.

Walmart shares fall after sales growth slows

Walmart shares fell more than 8% in early trading on Thursday despite the strong profit and the higher full-year forecast. The weaker store sales worried investors because Walmart is closely watched as a sign of how strong or weak US consumer spending is. One reason for the slower store sales was a shift toward online shopping. More customers bought products online instead of visiting Walmart stores.

Lower drug prices hurt Walmart sales

Lower prices for GLP-1 weight-loss drugs also affected sales growth. Walmart has a large pharmacy business, and lower prices for these drugs contributed to weaker sales growth in its US stores, according to CNN. Higher gas prices are also putting pressure on American consumers. Walmart said customers have less money available for other purchases when they have to spend more at the gas pump.

Walmart CFO John David Rainey said the consumer environment is “arguably” softer than it was in February. He said Walmart is seeing more pressure on consumers because of higher fuel prices, according to CNN. Rainey said gas prices above $4 a gallon can have a psychological effect on consumers. When fuel becomes expensive, people start making choices about where they spend their money, he said.

Walmart will use refund to cut prices

Walmart does not plan to simply hand the $2.9 billion refund directly to customers. Instead, the company said it will use the money for “customer experience and price investments,” which means spending on its business and lowering prices, according to CNN.

Fortune reported that Walmart had previously said its financial guidance did not include any benefit from tariff refunds. The company said in a May disclosure that it would use the money to help lower prices rather than provide direct refunds to shoppers. Walmart is not the only major retailer receiving a large tariff refund. Several other major US companies have also received or expect to receive hundreds of millions of dollars from the government.

Target has received a tariff refund of about $994 million. The company has already received most of that amount. Nike expects to receive about $986 million in tariff refunds. Unlike Walmart's plan to use its refund to support price cuts, Nike does not plan to give the money directly to customers, according to Fortune.

Target, Amazon and Home Depot refunds

TJX, the parent company of TJ Maxx, Marshalls and HomeGoods, is receiving about $331 million. Home Depot is receiving about $730 million, while Lowe's is receiving about $80 million, according to CNN. Amazon is also receiving a tariff refund. The company is expected to receive about $640 million. Amazon has said it could give refunds to a limited number of customers affected by tariffs. Fortune reported that Amazon may provide refunds only to certain customers who were directly impacted by the tariffs.

Why the US is giving tariff refunds

The tariff refunds are linked to a major legal fight over President Donald Trump's tariffs. The US Supreme Court ruled in February 2026 that Trump's broadest tariffs were illegal. The US government began issuing tariff refunds in May 2026. The refunds are linked to about $168 billion in tariffs collected from roughly 330,000 importers. By July 31, the government had already sent out about $100 billion in tariff refunds. The figure was included in a court filing by US Customs and Border Protection.

The refunds are not limited to retailers. Other major companies, including Apple, Nike, Amazon and FedEx, have also reported receiving or expecting tariff refunds in their latest earnings reports. For Walmart, the huge refund is helping its financial picture, but it has not removed concerns about US consumers. The company is benefiting from the return of billions of dollars in tariff payments, while higher gas prices and weaker store sales show that shoppers are becoming more careful with their spending.

The key takeaway is that Walmart is getting about $2.9 billion back from tariffs paid on imports, and most of the money has already been received. Walmart plans to use the refund mainly for business investments and price cuts, rather than sending the money directly to shoppers.

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