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Walmart, the largest retailer in the nation, has announced it is raising prices because of President Donald Trump’s tariffs.
The retail giant said on Thursday that it may absorb some of the import taxes, but it is still raising prices to offset increased costs resulting from Trump’s ill-advised trade war.
“The tariffs will result in higher prices,” CEO Doug McMillon said bluntly on an earnings call.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said.
The announcement comes days after the Trump administration announced that it would be lowering its tariff rate against China from 145 percent to 30 percent — an improvement no doubt but still a major tax on common consumer goods. China — and, because of retaliatory tariffs, the United States — has been hit the hardest by Trump’s trade war, and the president still has tariffs in place on several other nations, despite pausing the initial far-steeper import taxes he announced in early April. Trump has simultaneously warned that Americans might have to cut back on certain goods as prices rise, while claiming the tariffs will make everyone richer than they could ever imagine.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told The Wall Street Journal. “It’s a dynamic and fluid environment.”
Walmart is not the only retailer warning that prices may increase despite Trump’s decision to deescalate with China. Effective tariff rates remain a cost burden for companies importing goods, and shipping into the United States has slowed significantly since April. Last month, companies like Black & Decker, Adidas, and Procter & Gamble warned that price hikes were coming. Online retailers like Temu — who ship much of their stock directly from China, slapped buyers with “import charges” on purchases.
The president is unlikely to be enthused by Walmart’s announcement. In April, the White House attacked Amazon following a report that the company would display tariff-based price increases on product listings. The White House accused Amazon of engaging in a “hostile and political act” and Trump reportedly called Amazon Founder Jeff Bezos directly to demand the policy be stopped.
Trump caved as China refused to come to the table until the tariffs had been significantly reduced. Walmart’s announcement proves that plenty of damage has already been done as a result of his trade war, and American consumers are the ones who are going to pay.
