Among the retailers recently accused of “double dipping” on tariff costs, Walmart is taking a different approach.
Instead of pocketing the windfall from newly issued tariff refunds, the retail giant says it plans to use at least some of that money to lower prices for shoppers feeling increasingly squeezed by higher fuel and living costs.
The announcement came during Walmart’s latest earnings call after the federal government began issuing tariff refunds to importers that paid the higher customs duties before most of them were struck down by the Supreme Court.
Walmart is the largest retailer so far to suggest that those refunds could be passed on to customers through lower prices.
“We think that the single best return that we can have on a dollar of capital right now is to investment in the customer, invest in price,” Walmart Chief Financial Officer John David Rainey said during the earnings call, as per NPR. “We see with our customers that the high-income customer is spending with confidence, while the lower-income consumer is more budget-conscious and perhaps navigating financial distress.”
The chain has already expanded a wave of temporary price cuts launched last year and now has roughly 7,200 products selling at reduced prices.
Walmart has not specified which products could see lower prices or when those reductions might arrive. However, the retailer’s comments suggest that shoppers may soon see some of the benefits from the tariff refunds reflected on store shelves.
Walmart U.S. CEO John Furner said the company remains focused on helping shoppers navigate persistent financial pressures, particularly in the grocery aisle, where customers continue hunting for deals.
“This is an industry, particularly in food, where everyone is looking for value and has been for a really long time,” Furner said during the company’s earnings call.
As an example, Furner pointed to a recently launched basket of grilling essentials that can feed eight people for less than $5 per person.
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