Walmart executives said Thursday that the retailer may use tariff refunds to lower prices for customers as rising fuel costs continue to pressure household budgets across the United States.
During the company’s earnings call, Chief Financial Officer John David Rainey pointed to changing customer behavior at Walmart gas stations as a sign that many Americans are feeling financial strain. He noted that, for the first time since 2022, more customers are purchasing less than ten gallons of fuel at a time, reflecting tighter spending habits among budget-conscious shoppers.
Rainey said wealthier consumers are still spending comfortably, while lower-income shoppers are becoming more careful with everyday expenses and facing increasing financial pressure.
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“We see with our customers that the high-income customer is spending with confidence,” Rainey added later, “while the lower-income consumer is more budget-conscious and perhaps navigating financial distress.”
The comments come after the U.S. government began refunding tariff payments to importers last week. The refunds apply to higher customs duties that had been imposed by President Donald Trump before the Supreme Court struck down most of the tariffs.
Walmart is now among the biggest retailers signaling that those refunded funds could be directed toward keeping prices lower for customers.
“We think that the single best return that we can have on a dollar of capital right now is to investment in the customer, invest in price,” Rainey said.
Company executives also said Walmart stores and fuel stations are attracting more bargain hunters as consumers search for ways to cut spending. Sales at Walmart rose 4.1% between February and April in U.S.
Retailers across the country are seeing similar patterns. Companies including Home Depot, Target, and Lowe’s said during earnings calls this week that slightly larger tax refunds helped ease some pressure on household budgets in recent months. All three retailers reported sales growth in the latest quarter.
Recent federal data also showed that retail and online spending in April increased 5.2% compared to the same period last year, outpacing inflation. Analysts say the jump suggests consumers were not only paying more because of inflation, but were also continuing to buy goods despite economic concerns.
Spending at gas stations climbed sharply by 21%, largely due to rising fuel prices.
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Walmart executives warned that continued increases in fuel costs could eventually push up prices across store shelves as transportation and supply chain expenses rise. Concerns have also grown after the ongoing U.S. conflict with Iran disrupted tanker movement through the Strait of Hormuz, a major route for global shipments of fuel and fertilizer.
Inflation in the United States already rose to its highest level in three years in April, with energy prices contributing heavily to the increase. According to AAA, the national average price for regular gasoline on Thursday stood at $4.56 per gallon, up $1.38 from the same time last year.