Walmart acknowledges that Trump’s tariffs will cause price increases

Walmart’s aisles, known for offering low and affordable prices, will soon reflect the cost of U.S. trade policy. The world’s largest retail chain has warned that despite its efforts to contain increases, tariffs imposed by President Donald Trump are forcing the company to raise prices starting this month.

“We will do everything we can to keep our prices as low as possible, but given the magnitude of the tariffs, even with the reduced levels announced this week, we cannot absorb all the pressure given the reality of tight retail margins,” Walmart CEO Doug McMillon explained during the company’s fiscal first-quarter earnings conference call.

Walmart’s announcement coincides with a worldwide trade battle that has increased the cost of importing goods into the US. In addition to raising taxes on Chinese goods, the White House has placed a 10% universal tariff on all imports. The cost of mattresses, toys, strollers, and other common consumer goods has started to reflect this approach.