US retail giant Walmart is gearing up to raise prices at its stores, potentially within weeks, due to the costs of President Donald Trump’s tariffs. The company’s Chief Financial Officer John David Rainey told CNBC that tariff-related price hikes are likely to start rolling out “towards the tail end of this month” and may increase further in June.
The decision comes as Walmart reported strong earnings, with sales rising 4.5% at US stores and its e-commerce business notching its first profitable quarter. However, Rainey warned that the Trump administration still has work to do to resolve cost pressures, which have risen at a scale and speed without historical precedent.
Walmart’s stock fell 3.6% on Thursday morning following its earnings report, as investors reacted to the news of potential price hikes. The company’s CEO Doug McMillon attributed the impact of Trump’s tariffs mainly to the high costs of toys and electronics sourced from China, which have risen by 145%.
The retailer plans to absorb some of the higher prices and not pass them on individually, but will also make adjustments such as shifting materials from tariff-impacted components like aluminum to fiberglass. This move could help keep food prices low, with McMillon promising to do so.
Analysts predict that Walmart’s pricing strategy will have a ripple effect across the retail industry, with grocery prices set to rise 3% to 5% and merchandise dependent on global sourcing increasing by 5% to 7%. Other big-box retailers are also bracing for price increases, but Walmart has maintained its sales and profit guidance for 2025.
Source: https://www.nbcnews.com/business/business-news/walmarts-tariff-price-hikes-are-likely-weeks-away-rcna206837