Target Boosts Profits by $994M After US Tariff Refunds

US Tariff Refunds Boost Target's Profits

Tariff Refunds Fuel Retailer's Surge in Second Quarter Earnings

Target has received almost $1bn (£733.9m) in tariff refunds from the US government, resulting in a doubling of its second quarter operating income to $2.6bn.

The American chain said it received a $994 million pre-tax reimbursement, which has boosted its profits.

Tariff Reforms Bring Relief to Retailer

Target is the latest business to benefit from tax rebates on goods imported to the US following a Supreme Court ruling that declared a wave of President Donald Trump's import tariffs unlawful.

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However, Trump has continued to impose duties on goods coming into the US through different legal means, meaning many companies still face extra taxes.

Tariff Delays Easing Pressure on Retailer

The president announced on Monday he would delay the introduction of a raft of new import taxes on various Canadian goods for three days as negotiations over a trade deal continue.

Trump has threatened to impose 50% levy on nearly $20bn (C$28bn) worth of imports from Canada. The two sides have been at an impasse on several issues, including US tariffs on autos, and many Canadian provinces banning American liquor sales.