Walmart to Raise Prices Due to Trump's Tariffs: Get Ready for Sticker Shock!

2025-05-15 12:00:37.586

Walmart, the world's largest retailer, has warned that it's not immune to the effects of President Donald Trump's tariffs and will be raising prices on some items. The company says it's absorbing as much of the cost increases as possible, but the magnitude of the tariffs necessitates price adjustments. These increases are expected to begin later this month, with a more significant impact in June. Many companies are taking similar measures to mitigate the impact of tariffs, which have already increased the cost of various goods. The Federal Reserve reported a 0.3% price increase this year due to tariffs. Walmart's move could create political tension with Trump, who has previously criticized companies for raising prices due to tariffs. Despite these challenges, Walmart's US business remains strong, with sales growth driven by its grocery business and increased spending from higher-income households. Walmart's investments have broadened its customer base to include more upper-income shoppers. Analysts believe Walmart's scale and supplier relationships will help it maintain low prices relative to competitors, potentially increasing market share. The company sources fewer products from China (around 15%) than many retailers, lessening the tariff's impact. Around 60% of its products are groceries, mainly sourced domestically. The retail industry faces significant challenges due to tariffs, with many companies shifting production and raising prices. Walmart's CEO previously informed Trump about the supply chain disruptions caused by the trade war.