New York
CNN
—
Walmart, the world’s largest retailer, warned that is not immune from President Donald Trump’s tariffs. It plans to raise prices on some items as Trump’s global trade war sends the company’s costs higher.
“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,” Walmart CEO Doug McMillon will tell analysts Thursday on an earnings call. Walmart sent out several prepared remarks from executives before the call.
Walmart said the price hikes will begin later this month.
“I’m concerned that consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June,” Walmart finance chief John David Rainey said in an interview with CNBC Thursday.
Many companies have been raising prices to mitigate cost increases from the 10% universal tariffs on every product entering the United States and higher levies on Chinese goods. Washington and Beijing reached an agreement to lower those tariffs this week, but the United States still charges a 30% levy on most goods coming from China.
Walmart’s business in the United States remains strong, despite tariffs and recession fears.
Walmart’s sales at stores open for at least a year grew 4.5% last quarter, driven by its grocery business. Walmart said it gained with higher-income households, continuing its strength with wealthier customers.
Walmart’s stock jumped 2% during pre-market trading.
This is a developing story. It will be updated.
