Walmart has announced it will raise prices on select products due to the impact of new tariffs imposed under President Donald Trump’s economic policy agenda.
According to prepared remarks obtained by CNN ahead of an earnings call with analysts, Walmart CEO Doug McMillon stated: “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.”
Newsweek reports it reached out to Walmart for additional comment, though the company has not yet responded outside of normal business hours.
Context Behind the Tariffs
The price increases come as a direct response to the sweeping tariff policy introduced by Trump on April 2—labeled by the former president as “liberation day.” The tariffs, which target foreign goods entering the U.S., were enacted as part of a broader effort to correct America’s long-standing trade imbalances.
The White House argued that the tariffs were essential to addressing the country’s “large and persistent annual U.S. goods trade deficits,” an issue many economists have long warned weakens American manufacturing and increases reliance on foreign production.
The policy imposes a blanket 10 percent tariff on all imported goods, significantly altering the economics for retailers that rely on foreign supply chains.
How Walmart Fits In
While Walmart sources around two-thirds of its inventory from U.S.-based suppliers—most notably groceries, which make up roughly 60 percent of its domestic business—the remaining portion of its goods are still susceptible to import-related cost pressures. As the world’s largest retailer, serving nearly 95 percent of Americans at least twice a year, even modest pricing shifts can have wide-reaching effects.
Despite the tariff pressures, Walmart has tried to reassure customers and investors alike that it is well-positioned to manage through economic uncertainty. “History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” said CFO John David Rainey. CEO McMillon echoed that sentiment in April, stating, “We’ve learned how to manage through turbulent periods.”
However, the company now acknowledges that some price increases are unavoidable due to the scale of the new trade policy changes.
Impact Across the Retail Sector
Walmart isn’t alone in adjusting to the changing trade landscape. Retailers across the economic spectrum—including fast-fashion giants Shein and Temu, as well as luxury brands like Hermes and Ferrari—have also announced price hikes. The effect is especially pronounced for businesses with strong ties to Chinese manufacturing, as China remains the primary target of the revised tariff structure.
Nonetheless, a temporary pause in escalating tensions was reached recently. The U.S. and China agreed to a 90-day tariff reduction deal. U.S. tariffs on Chinese goods are being scaled back from a peak of 145 percent to 30 percent, while China’s retaliatory tariffs on American exports will drop from 125 percent to 10 percent. Though a welcome reprieve, the underlying trade tensions remain unresolved.
What Lies Ahead
Walmart’s price increases are expected to take effect later this month. The retailer says the ongoing uncertainty in global trade is complicating long-term planning, a concern shared by many in the retail and manufacturing sectors.
While critics argue that tariffs lead to higher consumer costs, supporters see them as a necessary tool to restore balance in America’s trade relationships and incentivize domestic production—goals that could yield long-term benefits despite short-term challenges.
As the economic debate continues, everyday shoppers will soon start to feel the ripple effects of these policies at the checkout line.