Walmart Is Increasing Its Prices Thanks to the Tariffs

Walmart shoppers will officially begin seeing price increases on select products thanks to President Donald Trump’s tariffs, which went into effect globally in early April despite economic concerns and consumer uncertainty.

Within days, the retail chain expects to begin increasing its prices on certain items as customers bear the weight of the tariffs at the point of sale.

Walmart's tariff-related price hikes will likely kick in “towards the tail end of this month [May],” with more increases expected in June and throughout the summer, Walmart Chief Financial Officer John David Rainey told CNBC last week.

On May 15, Walmart CEO Doug McMillon told investors that Trump’s 145 percent tariffs on China have had “the biggest impact” on toys and electronics, while Rainey said that tariffs and duties up to 50 percent are “not a good outcome for retailers, not a good outcome for the economy.”

Companies such as Mattel, Procter & Gamble and Adidas, which all sell products at Walmart, have already raised their prices or indicated price hikes to come.

Globally produced products are expected to rise 5 to 7 percent in price by the end of the year.

According to NBC News, prices are likely set to rise on products such as coffee, avocados, bananas and roses due to tariffs on countries including Colombia, Peru and Costa Rica.

During the earnings call McMillon promised Walmart will “do our best to control what we can control in order to keep food prices as low as possible,” which could mean absorbing some of the costs of the tariffs.

“We also have suppliers shifting materials from tariff-impacted components like aluminum to fiberglass, where there is no tariff. Our merchants, sourcing team and suppliers are being creative,” he added.

Meanwhile, this month Walmart reported that its sales rose by 4.5 percent at its U.S.-based brick-and-mortar locations, while online sales also earned a profit.

Walmart made $165.6 billion in revenue during its first quarter this year.