In its quarterly earnings call on Thursday, Walmart announced that the major retailer would be raising prices at its stores due to the high tariffs on imports.
During the call, the Senior Vice President of Walmart, Stephanie Schiller Wissink told investors, “Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure.”
Following the announcement, President Trump criticized Walmart's decision in a Truth Social post, suggesting the retailer "eat the tariffs" rather than hike prices for customers.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
While Wissink already discussed Walmart's plans to absorb some of the added costs of tariffs during the Thursday call with investors, she noted that the company would have to pass on some of the price hikes to customers.
Starting as soon as late May and especially in June, prices at Walmart locations nationwide and online are going up – but just how much of a price hike you can expect is still unclear. Here’s what we know so far about the major retailer’s plans.
Why is Walmart raising prices?
The recent tariffs that have been rolling out over the last few months have been hitting businesses everywhere. Everything from cars to baby items have been getting more expensive due to tariffs.
However, until now, Walmart has been somewhat shielded from the impact of the trade war because a big chunk of its products are from the United States.
“More than two-thirds of what we sell in the U.S. is made, assembled, or grown here,” Wissink said. But not everything Walmart sells is made here and, in certain cases, there are no U.S. suppliers that could replace Walmart’s overseas suppliers. So some products on store shelves will be more expensive.
The retailer didn’t say exactly how much higher prices would be, but the Senior Vice President repeatedly emphasized that Walmart was in a position to absorb some of the costs in order to keep prices for shoppers as low as possible.
Part of that ability to absorb the cost is due to the success its seen in other areas of its business. During the earnings call on Thursday, the major retailer reported a big uptick in Walmart Plus memberships, noting a nearly 15% increase in membership income over the first quarter.
That and other sources of growth have helped put the company in a position to stave off price increases, as everyday low prices have historically been one of its key draws for consumers.
Walmart raising prices – but not on food
One way Walmart plans to limit the impact of tariff price hikes on its shoppers is by keeping food prices as low as possible. “We won't let tariff-related cost pressure on some general merchandise items put pressure on food prices,” Wissink said.
While certain imported foods that aren’t typically grown in the United States – like bananas, coffee and avocados – might get more expensive, Walmart plans to keep other food prices as low as possible. Instead, shoppers are most likely to feel the impact when shopping for electronics and toys, which, the retailer noted, are largely imported from China.
This is true across other retailers, too. One of Walmart’s biggest rivals, Amazon briefly considered displaying tariff charges on its product pages last month. Over 70% of products on the online marketplace come from Chinese suppliers, making the ecommerce giant even more vulnerable to tariffs than Walmart.
Related content
-
The High Price of Skipping Workers' Comp InsuranceTwo labor and employment attorneys highlight the penalties (fines, reputation damage and even jail time) that small businesses risk if they opt not to carry workers' comp insurance.
-
Why You May Want a PostnupEven after you've said "I do," you can draw up an agreement to protect your assets.
-
How the One Big Beautiful Bill Act Could Reshape 529 PlansTrump's budget-reconciliation package could change 529 plan rules as early as this summer. What does that mean for you?
-
Jet Set on a Budget: Expert Advice for Summer TravelThese cost-saving strategies, supplied by a financial adviser, are essential for enjoying summer travel without financial stress or debt.
-
5 Father's Day Gift Ideas That Also Make Good Long-Term InvestmentsTies are tired. Try these growth-potential gifts instead.
-
My First $1 Million: Retirement Coach, 69, Sammamish, Wash.Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
CVS Is Closing More Stores in 2025: What It Means for YouAs CVS Health continues its restructuring plan, additional store closures raise questions about access to pharmacy services and the future of retail healthcare.
-
The United and JetBlue Partnership: Everything We Know About Blue Sky So FarBlue Sky, the United and JetBlue partnership just announced, will give frequent fliers more ways to earn and use miles. Here's what you need to know.
