Fed Study Finds Only 14.8% of Firms Plan to Cut Prices After Tariff Refunds

Moneywise.com under the title··USCA·Read original
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Summary · why it matters

A Federal Reserve Bank of Atlanta survey found that most U.S. companies are keeping their tariff refunds rather than passing them to consumers, with only 14.8% intending to lower prices and 17.2% planning consumer rebates. The U.S. Treasury had issued nearly $135 billion in tariff refunds by mid-September, out of $166 billion collected by U.S. Customs and Border Protection from 330,000 importers before the Supreme Court declared President Donald Trump's Liberation Day tariffs illegal. Walmart received a $2.9 billion refund, Apple $2.2 billion, Nike $986 million, Target $994 million, Home Depot $730 million, Amazon $600 million, General Motors $500 million, TJX $331 million, Lowe's $80 million and Motorola $60 million. The survey found 75.2% of companies plan to hold onto their refunds, with 52.5% planning to invest in research and development or capital projects, and the refunds represent an average 1.7% of annual revenues. Walmart has pledged to use its refund to cut prices, while FedEx set up a tariff refund portal for eligible customers and UPS is also offering refunds to customers. Consumers have launched class-action lawsuits against companies including Nike, and Sens. Elizabeth Warren and Bernie Sanders are pressing the Trump administration to include consumer relief and plan refunds if the court strikes down new tariffs, including up to 12.5% tariffs on imports from 86 countries and 50% tariffs on a variety of Canadian products.

Impact on assets 13

Consumer Discretionary▼
Nike Inc
NKE
▼ NegativeRegulationrelevance

Nike received a $986 million tariff refund but faces consumer class-action lawsuits over not passing it on.

The Home Depot Inc
HD
± MixedTariffrelevance

Home Depot received a $730 million tariff refund but is not listed among companies pledging price cuts.

Lowe's Companies Inc
LOW
± MixedTariffrelevance

Lowe's received an $80 million tariff refund but is not among companies pledging to pass savings to consumers.

The TJX Companies Inc
TJX
± MixedTariffrelevance

TJX received a $331 million tariff refund, with no stated plan to pass savings to consumers.

Artificial Intelligence▲
Apple Inc.
AAPL
± MixedTariffrelevance

Apple received a $2.2 billion tariff refund but is not among companies pledging to pass savings to consumers, and faces class-action pressure.

Amazon.com Inc
AMZN
± MixedTariffrelevance

Amazon received a $600 million tariff refund but the article does not say whether it will lower prices or invest it.

Consumer Staples▲
Walmart Inc.
WMT
▲ PositiveTariffPricingrelevance

Walmart received a $2.9 billion tariff refund and pledged to use it to cut prices.

Target Corporation
TGT
± MixedTariffrelevance

Target received a $994 million tariff refund but has not pledged to cut prices for consumers.

Industrials▲
FedEx Corporation
FDX
▲ PositiveTariffDemandrelevance

FedEx set up a tariff refund portal for eligible customers, a customer-facing move tied to the tariff refunds.

United Parcel Service Inc
UPS
± MixedTariffRegulationrelevance

UPS is offering tariff refunds to customers, a customer-facing move tied to the tariff refunds.

Electrification & Mobility▲
General Motors Company
GM
± MixedTariffrelevance

General Motors received a $500 million tariff refund with no stated plan for passing it to consumers.

Smart City / Autonomous Infrastructure▲
Motorola Solutions Inc
MSI
± MixedTariffrelevance

Motorola received a $60 million tariff refund, with no stated plan to lower prices or rebate consumers.