Walmart CEO warns customers of cost increases: “The higher tariffs will result in higher prices”

Walmart has become one of the first major U.S. retailers to announce price increases following the White House’s imposition of sweeping new tariffs. This announcement comes after the retail giant had previously indicated it would hold off on such measures.

Currently, a 10 percent tariff applies to most imports entering the country, though imports from China face a higher rate of 30 percent. Additionally, a 25 percent tariff has been levied on steel and aluminum imports, as well as on foreign cars and certain automotive components.

Even at the 10 percent level, businesses—particularly smaller ones—feel the strain. During Walmart’s earnings call on Thursday, May 15, CEO Doug McMillon stated that “the magnitude of the tariffs, even at the reduced levels,” makes it impossible for the company “to absorb all the pressure given the reality of narrow retail margins.” Although Walmart’s stock initially dipped following the White House’s tariff announcement, it has since rebounded and is now trading about 7 percent higher than it was on January 1.

How much will prices at Walmart increase by?

This question is difficult to answer precisely, as the impact will vary from product to product. Goods imported from China are likely to see price increases more quickly, given the higher tariff rate applied to those imports. However, another key factor that Walmart—and other retailers—will consider is the profit margin on each item. Retailers will assess how much of the added cost they can absorb and how much must be passed on to consumers.

Nevertheless, the pricing lacks transparency, and since consumers don’t have access to much data on profit margins down to the product level, it may never be known at what level a company is sharing the cost of the tariff with the consumer or if they are passing along the cost in its entirety.

What other companies have said they will raise prices?

Amazon has also announced similar pricing adjustments, citing the large number of third-party sellers on its platform who lack the margins to absorb the added costs.

In November, before President Trump officially took office but after he had begun outlining the tariffs he intended to implement, electronics and appliance retailer Best Buy made it clear that they would be forced to raise prices. From March to April, the Bureau of Labor Statistics, through the Consumer Price Index, tracked a small increase in the price of computers, television, and appliances.

How long will the 10 percent tariffs remain in effect?

The 10 percent blanket tariffs are set to remain in place until July. They temporarily replace the more severe “reciprocal” tariffs announced by the White House on April 2. After a volatile week on Wall Street, the Trump administration implemented a 90-day pause on the higher rates, opting instead for a flat 10 percent—except in the case of China, which retaliated with its own duties on US imports.

President Trump defended the pause, citing outreach from numerous countries to the US Trade Representative seeking to negotiate deals. The delay is intended to allow time for negotiations, though many international trade experts caution that agreements of this scale and significance typically take years to finalize.

Even in the case of the United Kingdom—where the US announced a deal last week—the agreement did not include a reduction in tariffs on most goods entering the U.S. from the U.K. Nevertheless, Prime Minister Keir Starmer and his government were eager to present the deal as a major success, despite growing questions about the tangible benefits for British workers, businesses, and consumers.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.