Target has received almost $1bn in tariff refunds from the US government, providing a significant boost to its latest quarterly results. The retailer said a $994 million pre-tax reimbursement helped double its second-quarter operating income to $2.6bn, up from $1.3bn a year earlier, making it the latest company to benefit after a Supreme Court ruling found a wave of President Trump's import tariffs to be unlawful. However, Trump has continued imposing duties through other legal routes, meaning many firms still face additional costs.

The refund follows a court filing revealing the Trump administration has repaid $100bn in "Liberation Day" tariff refunds to businesses, roughly 60% of total revenue collected under the policy. Target's chief financial officer Jim Lee declined to specify how the refund would be used, saying only that the company would "continue to invest in price." Target, which sources 30% of its store-label goods from China (down from 60% in 2017), is midway through a turnaround plan and says it has cut prices on more than 10,000 items over the past year.