America's biggest retailers are now sitting on tariff refund checks from the federal government. How they plan to spend the billions of dollars in returns is up to them.
The retailers, including Amazon (AMZN), Target (TGT), and Walmart (WMT), are taking various approaches. Some have offset their costs and cushioned their margins, while others have invested in marketing and cutting prices. In a small number of cases, some even claim plans to return the money to customers.
David Silverman, senior director at Fitch Ratings, noted that the billions in refunds present a predicament for businesses because of the "perception by consumers that they ultimately paid the cost of those tariffs through higher prices."
As of late July, the Trump administration returned more than $100 billion to businesses following the Supreme Court's ruling in February that struck down tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA). That's about 60% of the total $166 billion collected under the IEEPA tariffs.
The tariff environment is a "wild card," CFRA **** yst Arun Sundaram said, noting that "[It's] kind of different how each retailer is handling it, and it's also different between how much tariff refunds each retailer is getting."
#tariff #tariffs #prices #different
The retailers, including Amazon (AMZN), Target (TGT), and Walmart (WMT), are taking various approaches. Some have offset their costs and cushioned their margins, while others have invested in marketing and cutting prices. In a small number of cases, some even claim plans to return the money to customers.
David Silverman, senior director at Fitch Ratings, noted that the billions in refunds present a predicament for businesses because of the "perception by consumers that they ultimately paid the cost of those tariffs through higher prices."
As of late July, the Trump administration returned more than $100 billion to businesses following the Supreme Court's ruling in February that struck down tariffs imposed under the 1977 International Emergency Economic Powers Act (IEEPA). That's about 60% of the total $166 billion collected under the IEEPA tariffs.
The tariff environment is a "wild card," CFRA **** yst Arun Sundaram said, noting that "[It's] kind of different how each retailer is handling it, and it's also different between how much tariff refunds each retailer is getting."
#tariff #tariffs #prices #different
18 days ago
