Target hinted it would pass at least some of its $994 million in tariff refunds to customers in the form of lower prices as it announced its Q2 2026 earnings on August 20. Target chief financial officer Jim Lee did not provide details but, when asked about what the company intended to do with the refund, said: "We have and will continue to invest in price."
BBC News reports that the retail giant chain said it received a $994 million pre-tax reimbursement, which resulted in its second quarter operating income doubling to $2.6 billion from $1.3 billion for Q2 2025, and boosting profits.
Last year the company slashed its expectations, which it blamed on a "highly challenging environment" in part because of the introduction of tariffs.
The amount the U.S. Customs and Border Patrol has refunded to companies that paid tariffs illegally levied by the Trump administration under the International Emergency Economic Powers Act reportedly reached $100 billion earlier in August. That accounts for around 60% of the $165 billion collected from President Donald Trump's "Liberation Day" levies that were announced in April 2025.
According to The Guardian, another $29 billion is still undergoing review, with another $1.6 billion in refunds delayed because of importers that have not yet given the federal government banking information.
