From CNBC: 2025-05-15 13:59:00

Walmart’s CFO John David Rainey warned investors of price increases on many items due to tariffs, despite a temporary reduction on Chinese imports. Shoppers can expect higher prices in late May and June, with more markups in the fiscal second quarter. Walmart sources goods from various countries, facing tariff pressure on imported items.

The tariffs have impacted prices on products like bananas, avocados, coffee, roses, toys, and electronics. Retailers, including Walmart, are managing inventory and adjusting to fluctuating tariff levels. The recent temporary agreement between the US and China reduced duties from 145% to 30%, providing some relief to retailers and consumers.

Walmart is taking steps to reduce tariff exposure and maintain sales expectations for the year. Despite missed revenue expectations, the company is sticking by its full-year forecast. Rainey believes that higher prices could drive consumers to seek value, potentially benefiting Walmart and allowing it to gain market share.

Rainey stated that Walmart will keep price gaps with competitors the same, even if it means sacrificing some profit margin. The company is prepared to absorb short-term impacts for long-term benefit. Walmart remains committed to providing value to consumers and navigating the challenges of tariffs in the retail industry.



Read more at CNBC: Walmart to increase some prices due to Trump tariffs