Tariff Refund Update: Walmart Teases Lower Prices

Efforts are underway to refund the billions of dollars that importers paid under Donald Trump's now-defunct tariffs, and some consumers could be set to benefit in the form of lower prices at some of America's largest stores.

Walmart Says Tariff Refund Could Fund Lower Prices

Last week, the retail giant Walmart said it expected to receive a rebate worth under half a percent of its annual U.S. sales, roughly $2.4 billion. During the company's first-quarter earnings call, chief financial officer John David Rainey said that, when it came to employing these funds, Walmart would "definitely bias and prioritize price investment."

"We think the single best return that we can have on a dollar of capital right now is to invest in the customer and invest in price," Rainey said, having noted that many consumers were already feeling the pinch from rising fuel prices and spending more cautiously as a result.

The comments came as U.S. Customs and Border Protection (CBP) revealed in a court filing Tuesday that it had already processed $20.6 billion in tariff rebates as of May 22, with the funds now being sent to importers who paid the duties.

Why the Government Is Issuing Refunds

The Supreme Court invalidated most of President Donald Trump's global tariffs in February, with a majority of justices ruling that he exceeded his presidential authority by implementing these using the International Emergency Economic Powers Act (IEEPA).

Customs officials estimate that the government owes about $166 billion in IEEPA tariff payments to over 300,000 importers. Since the 6-3 decision, businesses and trade associations have pushed for swift reimbursement, with many importers filing lawsuits against CBP to this end.

Experts have warned that delays could create additional costs for the government, given the interest compounding on the amounts owed.

In the recent filing, CBP said that around $85-billion worth of refunds had been accepted for processing, including the $20.6 billion that have already been sent to the Treasury for disbursement.

Will Consumers Get a Refund?

Tariff rebates will go to the importer of record, officials have said, meaning consumers are unlikely to see any direct benefits, despite having in many cases paid for these in the form of higher prices.

Some believe consumers may have a legal claim to a portion of the rebate, particularly in cases where companies made clear that surcharges were the result of tariffs. Several lawsuits have already been filed by consumers seeking their share, which the law firm Arnold & Porter has called "the next wave of tariff litigation."

Costco, UPS and FedEx Also Promise Rebates or Savings

In addition to Walmart, other major corporations have said they will use the rebate to support lowering prices for their customers. Costco, which sued the government in November for a full tariff refund, said that it would be returning the rebate to customers "through lower prices and better values."

"As we've done in the past when legal challenges have recovered charges passed on in some form to our members, our commitment will be to find the best way to return this value to our members," said CEO Ron Vachris during a March earnings call.

Separately, UPS has said it will refund all tariffs collected from customers, and has been working with customs officials to this end.

FedEx, which was sued in February by customers seeking reimbursement for the tariffs they paid, similarly told Reuters that it would be issuing rebates "as soon as it begins receiving refunds from CBP."

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This story was originally published May 27, 2026 at 9:07 AM.