Walmart, the largest U.S. retailer and grocer, has announced it will raise prices on some goods due to a new wave of global tariffs. Chief Financial Officer John David Rainey said the company will absorb some of the impact—but not all.
“This is a little bit unprecedented,” Rainey told CNBC. “Shoppers will likely start to see increases toward the end of May and more in June.”
The hike comes despite a recent 90-day reprieve, which cut duties on Chinese goods from 145% to 30%, while dozens of other countries face 10% duties.
Which Products Will Cost More?
CEO Doug McMillon outlined several categories where import tariffs are driving up costs:
- Produce: bananas, avocados, coffee, and roses (hit by tariffs from Costa Rica, Peru, Colombia)
- Toys: many sourced from China
- Electronics: including Microsoft’s Xbox consoles and controllers
- Seasonal goods: back-to-school and holiday merchandise arriving now is already tariffed
Even Mattel has announced toy price hikes, and Microsoft quietly raised suggested retail prices for gaming products sold through Walmart.
How Is Walmart Reacting?
To soften the impact:
- Walmart is cutting order sizes in high-tariff categories
- Suppliers are switching materials (e.g., aluminum → fiberglass)
- The company is diversifying supply chains to avoid high-tariff countries
- Walmart says it will preserve its price gap with competitors, even if it means lower profit margins short term
Rainey noted, “There might be areas where we want to play offense… absorb some impact for long-term gains.”
What It Means for Shoppers
- Prices on key items will rise in the coming weeks, but likely less than at other retailers
- Walmart’s deep supply chain allows it to minimize—but not eliminate—price hikes
- With shoppers chasing value, Walmart may actually gain market share despite inflation pressures
The Outlook
Though Walmart just missed Wall Street’s Q1 revenue expectations, it reaffirmed its full-year forecast, signaling confidence in strong demand. Higher tariffs may sting, but for now, America’s biggest discounter is turning pressure into opportunity.
Expect to pay more for everyday essentials like fruit, flowers, and toys at Walmart this summer, but likely still less than elsewhere.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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