US Retail giant Target has received nearly $1 billion in tariff refunds from the federal government, helping to double its operating income in the latest quarter.
The company said it received a $994 million pre-tax reimbursement, contributing to second-quarter operating income of $2.6 billion, compared with $1.3 billion during the same period last year.
The refunds followed a US Supreme Court ruling that found a wave of tariffs imposed by President Donald Trump unlawful, prompting the government to repay duties previously collected from businesses
Target is among numerous American companies benefiting from the repayments. US customs officials recently disclosed that about $100 billion in tariff refunds linked to the affected duties had already been returned to businesses
The retailer has not disclosed specifically how it intends to use the windfall, although Chief Financial Officer Jim Lee said Target would continue investing in lower prices.
The company has cut prices on more than 10,000 products over the past year as it attempts to revive sales and navigate continued pressure from import costs.
Target has also been reducing its dependence on China, which currently supplies about 30 per cent of its store-brand products, down from around 60 per cent in 2017.
Despite the refunds, companies operating in the United States continue to face new tariffs imposed by the Trump administration under other legal authorities.
Cosmetics company Estée Lauder also reported a $38 million benefit from tariff refunds in its latest quarterly results, partially offsetting higher tariff costs recorded during the year.
Target Chief Executive Michael Fiddelke said the retailer still had significant work ahead but was encouraged by progress under its turnaround strategy.
