LOW · 10-Q · 2026Q3 · Full report

Trade Policy and Tariffs

LOWES COMPANIES INC · 2026-08-27 · Importance 37 · Surprise 42

The United States enacted significant trade-policy changes beginning in 2025, imposing new tariffs on most imported goods. Lowe’s stated that the 2026 tariff environment remained dynamic because of court rulings, changes to existing tariffs, and potential additional tariffs. The Company evaluates impacts on merchandise assortment, pricing, and global supply-chain strategies and recognized approximately $80 million of pre-tax tariff refunds in the second quarter after the Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act on February 20, 2026. Uncertainty remains regarding the amount and timing of future IEEPA refund collections.

Key facts

• The tariff environment for 2026 remains dynamic and subject to ongoing modification including court rulings, changes to existing tariffs and potential for additional tariffs this year. source
• The Supreme Court declared on February 20, 2026 that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. source
• In the second quarter, we recognized approximately $80 million pre-tax of tariff refunds. source
• The Company is the importer of record for certain imported products and pays tariffs directly. source