Walmart Using $2.9 Billion Tariff Refund to Cut Prices for Shoppers

Walmart says shoppers will see lower prices after the retail giant received nearly $2.9 billion in refunds for tariffs it previously paid.

The company says it is using the money to invest in lower prices and customer experience, with thousands of products already receiving price reductions. The cuts are focused heavily on groceries and general merchandise.

The move comes as higher gasoline prices are putting pressure on household budgets.

Walmart reported that U.S. comparable sales increased 2.6% during its latest quarter, marking the company's slowest growth in more than six years. Executives said higher fuel prices are leading some consumers to make trade-offs in their spending.

Walmart Chief Financial Officer John David Rainey said the company has seen signs of a softer consumer environment compared with earlier in the year.

The retailer has already rolled out about 11,000 price reductions, according to the company. Walmart says it expects the impact of those lower prices to become more apparent in the coming months.

Despite the slower U.S. sales growth, Walmart's overall revenue increased nearly 6% to about $187.9 billion for the quarter. Online sales were a major bright spot, with U.S. e-commerce sales increasing 24%.

The tariff refund stems from import tariffs that were later overturned by the U.S. Supreme Court. Walmart is among several major retailers receiving refunds from the federal government.

For shoppers, the company says the goal is straightforward: put some of that refunded money back into lower prices.

Walmart executives say the company will continue adjusting prices across different categories as it works to attract consumers who are becoming increasingly cautious about where they spend their money.