Walmart says shoppers will directly benefit from nearly $2.9 billion in tariff refunds through lower prices on groceries and merchandise. The retailer has received most of its refund after the Supreme Court struck down tariffs imposed under IEEPA.

Chief Financial Officer John David Rainey said Walmart is investing in lower prices because consumers need relief and competitive pricing can help the company gain market share, with customers expected to see the effects during the third quarter. The federal government has returned roughly $100 billion in tariffs collected under the law. Businesses are estimated to owe $166 billion, with $66 billion awaiting repayment.

Walmart’s announcement follows thousands of summer Rollbacks on frequently purchased products. Fresh ground beef fell from $6.74 to $5.94 per pound, while a 24-pack of Coca-Cola dropped from $14.97 to $9.97. Bags of red cherries were reduced from $11.18 to $5.63.

President Trump credited his administration with encouraging Walmart’s summer price cuts, although the retailer’s original announcement did not attribute those discounts to a White House request.

Walmart is the nation’s largest retailer, and its pricing decisions carry strong influence on the grocery market. Lower prices could force Target, Kroger, Amazon, and other supermarket chains to respond with discounts rather than risk losing customers. That competition could spread the benefit of the refund beyond people who shop at Walmart.

Companies paid the levies when goods entered the country, but many passed part of those costs to shoppers through higher prices. Walmart is promising to reverse some of that effect, and its earnings reports and shelf prices will show whether the $2.9 billion produces reductions or mainly supports temporary promotions.

The refunds carry heavy consequences for federal finances, since returning an estimated $166 billion would reduce government revenue and may require Washington to adjust its borrowing or spending. Other importers receiving refunds will face similar questions about what they do with the cash. Walmart’s approach could create an incentive for companies to lower prices rather than use the money for debt, expansion, or shareholders.

Shoppers should begin to see lower prices during Walmart’s third quarter, but the savings will not be reflected across all products.

Families that buy beef, produce, beverages and household staples may see the clearest difference. A basket containing discounted products could produce savings, particularly for households choosing store brands. Online prices, delivery fees, and local availability may affect how much of that reduction each customer receives.

Walmart’s size makes this announcement larger than a handful of temporary discounts. If its lower prices pull customers away from competing stores, other major retailers may have little choice but to respond. That would subsequently turn one company’s tariff refund into a wider price fight across the grocery industry. For families who have spent the past year watching food bills climb, the real significance will be whether Walmart forces the market lower rather than merely offering another short-lived sale.