Walmart to Raise Prices Despite Tariff Relief, Warns of Higher Retail Costs
Walmart plans price increases this month as tariffs on Chinese imports continue to pressure costs. Despite easing duties, key household items and groceries may soon cost more, with the retail giant bracing for tighter margins.
Walmart says it's preparing to raise prices on a range of items, despite a recent reduction in U.S. tariffs on Chinese goods — a move that suggests global trade tensions are still hitting American wallets.
During the company's earnings call on Thursday, CEO Doug McMillon told investors that ongoing tariffs are creating cost pressures the retailer can’t ignore. “We can control what we can control,” he said. “Even at the reduced levels, the higher tariffs will result in higher prices.”
The price increases are expected to roll out later this month, although Walmart says it’s working to absorb as much of the extra cost as possible, especially on everyday items like groceries.
“In some cases, we are holding retail prices where they are despite the tariff cost pressures,” McMillon added. “We’ll do our best on what we can control in order to keep food prices as low as possible.”
Walmart’s update comes just as grocery prices showed a slight dip—falling 0.1% in April compared to the previous month, according to U.S. government data. Still, broader inflation has kept many household expenses high, and shoppers remain sensitive to even small increases.
While the Biden administration has dialed back some tariffs originally imposed under former President Trump, many duties on Chinese imports remain in place. Walmart and other retailers, which source a large portion of their merchandise from China, are still grappling with those lingering costs.
Amid the uncertainty, Walmart has also withdrawn its profit outlook for the upcoming quarter, citing an unpredictable global economic landscape. The company did, however, express confidence that profit growth will continue to outpace sales growth in the near future.
The retailer’s message was clear: even in a slightly more relaxed tariff environment, the effects of trade tensions are far from over — and consumers could see those effects on store shelves in the coming weeks.
Also Read: Walmart Could Lose Billions as Trump’s Tariffs Raise Import Costs
