Walmart Is Raising Some Prices Due To Tariffs

The retail heavyweight has spoken. Walmart, the largest retailer in the world, said yesterday it would raise some prices because of tariffs. Despite the 90-day reprieve on Chinese goods that will see their levy reduced from 145% to 30%, the company said it won’t absorb the rising costs it’s already seeing from suppliers.

On Walmart’s earnings call yesterday, CEO Doug McMillon celebrated the first-ever profitable quarter for both its US and global e-commerce arms, beating Wall Street expectations. Still, McMillon said it’s not enough to offset the tariffs:

• Noticeable price increases are expected to hit shelves as early as the end of this month.
• More price hikes will likely roll out this summer as retailers work through the merchandise they stockpiled when tariffs were first floated.

But if anyone can weather the storm, it’s Walmart

While some companies have lowered full-year forecasts or ditched them all together, Walmart is sticking with its expected 3%–4% sales growth in 2025. The retail giant chalked up the wins to attracting more higher-income shoppers, a group that will likely stick with them amid all the economic uncertainty.

Walmart said it will keep the cost of everyday items like groceries low, likely by raising prices on electronics and household goods—items that higher-income customers might still buy during a downturn:

• In the most recent fiscal year, roughly 60% of Walmart’s revenue came from groceries.
• Walmart emerged from the 2008 financial crisis with an even bigger market share and more brand loyalty by lowering prices on essentials.

Everyone is cutting back: April consumer spending chilled, increasing just 0.1%, after a pre-tariff buying spree in March, when spending surged 1.7%.—MM