Target Corp. said Wednesday it received a nearly $1 billion tariff refund from the federal government.

It is among the first major Minnesota companies to report its refund following the U.S. Supreme Court’s decision to strike down President Donald Trump’s most sweeping tariffs.

Trump’s tariffs, imposed at the start of his second term in 2025, dominated economic conversations and fueled higher prices on a range of goods as businesses passed through their higher costs to consumers.

Chief Financial Officer Jim Lee, when asked on a call with reporters this week whether the consumer would receive any slice of the company’s tariff refund, said Target will continue to “invest in price,” pointing to price cuts on more than 10,000 items in the past year.

In March, one month after the Supreme Court’s ruling, Target announced it would invest an additional $1 billion in the business. More recently, the retailer slashed prices on 3,000 items, including apparel, home, baby and grocery products.

The Minneapolis-based retailer reported the refund figure Wednesday among strong second consecutive quarter results, including higher comparable sales over the May-to-July period. In a sign of confidence, the company also raised its net sales forecast for the year.

Its stock was up 5% in morning trading.

Target is the second large Minnesota public company to report a tariff refund. Eagan, Minnesota-based Solventum, which is a spinoff of 3M, said in early August that it received $100 million.

Tariffs dominated conversations among companies — and U.S. consumers — last year, with many executives saying the duties pushed prices higher.

Target said Wednesday it received $994 million in pretax tariff refund benefits in the most recent quarter. Excluding the refund, Target’s earnings per share grew 20%.

Other companies are expected to report receiving refunds after U.S. Customs and Border Protection told the U.S. Court of International Trade in early August that it had certified about $100 billion in duty refunds, plus interest, as of July 31.

Minnesota companies paid $3.68 billion in import fees from March 2025 to February 2026, according to census data. Overall, U.S. companies paid about $166 billion in tariffs between February 2025 and February 2026.

In February, the Supreme Court ruled the president could not use the International Emergency Economic Powers Act (IEEPA) to impose the wide-ranging duties.

During Target’s year-end earnings call in March, Lee said the retailer faced “significant pressure from incremental tariff costs” throughout the year and was “working tirelessly to mitigate the net impact.”

Last year, former Target CEO Brian Cornell and other retail executives met with Trump to discuss the impact of tariffs on their industry. Target said at the time that about 50% of its merchandise was imported and that it was looking to diversify its countries of production. Cornell later conceded tariffs had led to some higher prices.

Retailers, automakers and manufacturers paid some of the highest tariff costs. Companies from Hormel to Arctic Cat filed for refunds.

While companies are receiving refunds for the IEEPA tariffs, Trump has issued new ones, using different statutes. The tariffs are a key plank of Trump’s foreign policy, he has said. This week, he is in a back and forth negotiations with Canada over a threat to impose a 50% tariff on certain goods.

The new refunds, plus inflationary pressure such as fuel prices, also are putting pressure on companies that transport goods to several state or import them from other countries.

Lee said on a Wednesday call with analysts that the retailer expected to receive more refunds from the federal government, though the $994 million figure accounted for a “significant majority” of what it applied for. Other retailers echoed similar comments.

Home Depot reported Tuesday that it received $730 million in tariff refunds, but it said the one-time payout was offset by higher gas, energy and raw materials costs, including metal and resin. TJ Maxx’s parent company, TJX Companies, said Wednesday it was refunded $331 million.

Other retailers, including Walmart, are expected to report quarterly earnings — and tariff refunds — later this week. Best Buy will share its results next week.

©2026 The Minnesota Star Tribune. Visit at startribune.com. Distributed by Tribune Content Agency, LLC.