Walmart has dropped a bombshell on concerned Americans: you are about to feel the pain of Washington’s trade policies.
Specifically, America’s largest retailer has announced price increases on certain products due to tariffs.
Despite its strong financial performance, the company plans to raise prices on various products by the end of May and into June.
Walmart, which employs 1.6 million Americans across 4,700 locations, revealed the upcoming price increases during its earnings report.
Although it generated an impressive $165.6 billion in revenue in the first quarter and reported a 4.5% sales increase at U.S. stores, the company’s stock fell 3.6% following the announcement of tariff-related price hikes.
Chief Financial Officer John David Rainey did not mince words: “It’s a challenging environment to operate in retail right now.”
Rainey pointed to the unprecedented cost pressures from tariffs that are forcing Walmart’s hand.
CEO Doug McMillon specifically identified President Donald Trump’s tariffs on China as having “the biggest impact” on Walmart, particularly since they affect toys and electronics.
The company is also facing pressure to raise prices on everyday essentials like bananas, avocados, coffee, and roses due to tariffs on imports from Costa Rica, Peru, and Colombia.
While Walmart has committed to absorbing some of the tariff costs to maintain competitive pricing, consumers will inevitably bear much of the burden.
The retail giant estimates grocery prices could rise 3% to 5% by year’s end.
In comparison, merchandise that is more dependent on global sourcing could increase by 5% to 7%, a significant blow to American families already struggling with inflation.
White House Deputy Press Secretary defended the administration’s tariffs policy. He said,
“Real prosperity is American workers being able to support their families and communities because they have good jobs that pay well and provide dignity.”
Walmart is not alone in this problem. Other major brands sold at Walmart have either already raised prices or announced plans to do so in response to tariff pressures.
These include Stanley Black & Decker, Adidas, Mattel, Microsoft, and Procter & Gamble. The cascading effect of these price increases will be felt throughout the economy.
Despite relying heavily on imports, Walmart sources about a third of its products from American manufacturers.
The company is working to lessen the impact of price increases by absorbing costs where possible and finding alternative materials not subject to tariffs.
Walmart maintained its overall 2025 sales and profit guidance but declined to provide guidance for the second quarter, citing uncertainty in the market.
This caution reflects broader concerns about consumer spending, as nationwide retail sales rose just 0.1% in April amid growing tariff worries.
McMillon expressed hope for a long-term agreement to lower tariffs following recent progress in U.S.-China trade relations.
He remarked that “high tariffs are not beneficial for retailers or the economy.”
Despite these challenges, Walmart reported growth among customers of all income levels and sees potential to gain market share as value-conscious consumers seek relief from rising prices.
