Walmart Inc. says it will begin raising prices before the end of May, blaming still-elevated U.S. tariffs on imported goods—a rare public signal from the nation’s largest retailer that the trade war is pushing inflation directly onto American consumers, as per Al Jazeera.
“There are certain categories we have no choice but to import, and costs for those items are going up,” Chief Financial Officer John David Rainey told CNBC after the company reported quarterly earnings. “Shoppers will start to feel it later this month and certainly in June.”
Although Washington and Beijing reached a partial truce that trimmed some duties, most China-made merchandise entering the United States is still subject to a 30 percent levy. Walmart, the country’s biggest container importer, said those costs are too steep for its thin retail margins to absorb.
Earnings Snapshot
- Revenue: $165.6 billion (up 2.5 percent year over year; slightly below forecasts)
- U.S. same-store sales: +4.5 percent, beating expectations
- Adjusted EPS: $0.61, versus analysts’ $0.58 consensus
- Shares: Down 2.3 percent in morning trading after the company withheld detailed Q2 profit guidance
CEO Doug McMillon said Walmart will work with suppliers to swap tariff-hit components—replacing aluminum with fiberglass, for instance—but conceded “we won’t be able to offset everything.”
Other brands are also signaling price increases. German footwear maker Birkenstock said Thursday it will raise prices worldwide to counter the 10 percent U.S. duty on EU-made goods.
Consumer sentiment has slipped for four straight months, and first-quarter U.S. GDP contracted for the first time in three years—fueling worries that higher shelf prices could further dent spending.
Walmart maintained its full-year 2026 outlook but declined to issue a second-quarter profit forecast, citing a “fluid operating environment” and uncertainty over the pace and scope of future tariff changes.
