Walmart Is Blaming Tariffs for Upcoming Price Hikes
Consumers might see higher prices at Walmart starting later this month.
Walmart is feeling the pressure of President Donald Trump’s tariffs. The world’s largest retailer announced that price hikes are coming later this month as it navigates higher expenses.
Walmart shoppers in the U.S. will start paying more for some items as soon as the end of May, and most definitely by June. Fluctuating tariff fees over the past few months have affected the company’s profit margin, and it appears the retailer will need to pass those expenses onto consumers.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” said CEO Doug McMillon, per FOX Business.
Walmart relies heavily on goods imported from overseas. Of all the merchandise sold, about 33% of it comes from another country, with China, Mexico, Canada, India, and Vietnam being the company’s biggest imports.
According to CFO John David Rainey, Walmart and its vendors are working together to keep prices from getting out of control. However, with U.S. policy continuing to change, it’s hard to predict how much inventory to order at a time. While the retailer has yet to cancel any orders, it has reduced purchases of items less likely to sell due to tariff-related price hikes.
Walmart by the Numbers
Walmart reported disappointing earnings for the fiscal first quarter. Revenue hit $165.6 billion, slightly missing analysts’ projections of $165.8 billion. However, the company managed to beat Q1 2025’s revenue of $161.5 billion.
Walmart reported a decline in net income for the Q1 2026. For the same period last year, the retailer’s profit reached $5.1 billion compared to $4.5 billion in the most recent quarter.
The amount shoppers spent per visit increased by almost 3% compared to the same period last year. Digital sales through the company’s retail site jumped 21% in the U.S., with global sales climbing 22%.
Right now, Walmart is undertaking an extensive expansion plan, starting with eight new locations in 2025. Overall, Walmart wants to open 150 new stores in the U.S. by 2030. In addition, the retailer is committed to remodeling roughly 650 locations this year alone.
