Walmart announced Thursday that it will be raising prices in response to increased costs tied to President Trump’s trade policies, indicating that tariffs are starting to impact both the economy and consumers.
The retail giant plans to implement price hikes this month and into early summer as tariff-affected goods begin reaching stores.
“The pace and scale of these cost increases are almost without precedent,” according to Walmart CFO John David Rainey. In addition, Walmart reported a drop in first-quarter profits, falling to $4.45 billion (56 cents per share) from $5.10 billion (63 cents per share), according to reports. The company declined to offer a profit forecast due to ongoing uncertainty around U.S. trade policy.
CEO Doug McMillon acknowledged that while Walmart aims to keep prices low, the scale of the tariffs—even after recent reductions—makes it impossible to fully absorb the added costs due to the company’s thin retail margins. Walmart is particularly vulnerable as it relies heavily on low-cost household goods and apparel, many of which are sourced from China.
Earlier this week, the Trump administration eased tariffs on Chinese imports from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%. Though these moves briefly boosted markets, they represent only a temporary 90-day pause intended to create space for further negotiations. The long-term outcome remains uncertain, and Walmart is among the many companies affected.
Trump also paused a separate round of global tariffs for 90 days in April to allow for talks with countries including those in the EU, Vietnam, and South Korea. It remains unclear how effective these efforts will be.
Despite the challenges, Walmart projected 3.5% to 4.5% sales growth for the remainder of the year, and reported a 2.5% increase in revenue, reaching $165.61 billion.
