Walmart warns of price hikes due to tariffs
“Always low prices” has long been a selling point for Walmart stores across the country. However, recent tariff announcements from the Trump administration have the company admitting their prices might have to change, at least for a little while.
President Donald Trump fired back at Walmart this weekend after the retail giant said it would be increasing prices due to the tariffs implemented by Trump.
Trump Walmart tariffs
The backstory:
Walmart said earlier this week that it will be raising prices to counter higher costs from President Donald Trump’s tariffs, despite strong quarterly sales.
What they said:
“We will do our best to keep our prices as low as possible,” Walmart’s CEO Doug McMillon told industry analysts Thursday. “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.”
By the numbers:
The price of bananas, imported from Costa Rica, rose from 50 cents per pound, to 54 cents, Walmart chief financial officer John David Rainey told The Associated Press earlier this week. He thinks car seats made in China that currently sell for $350 at Walmart will likely cost customers another $100. Baby strollers are also sourced from China, he added.
READ MORE: Walmart raising prices due to tariff costs: What we know
FILE – Customers shop for groceries at a Walmart store. Photographer: Gabby Jones/Bloomberg via Getty Images
Trump tells Walmart to ‘eat the tariffs’
Big picture view:
Trump lashed out at the retailer Saturday, saying Walmart should eat the additional costs created by his tariffs.
What they’re saying:
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump posted. “Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
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What tariffs are in place right now?
Big picture view:
The following is a general overview of Trump’s tariffs currently in place, at the time of publication:
- 30% tariffs on China for a 90-day period, down this week from 145%
- As high as 25% tariffs on Mexico and Canada
- Universal baseline tariff of 10% on most countries, while Trump is working trade deals with various countries in coming weeks
- Trump has also placed various import taxes on autos, steel and aluminum and plans to do so on pharmaceutical drugs, among other products
Meanwhile:
Trump is working to assure skeptical Americans that foreign producers, retailers or automakers will absorb the additional expenses that come from tariffs.
A slew of companies including toy manufacturer Mattel, toolmaker Stanley Black & Decker and consumer products giant Procter & Gamble have also already announced higher prices or plans to raise prices.
Why you should care:
Economic analyses are deeply skeptical of claims that tariffs won’t impact American consumer prices, and have warned that the tariffs would worsen inflation.
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The Source: Information in this article was taken from a May 17, 2025, Truth Social post and from comments made by Walmart executives on May 15, 2025, to industry analysts. Background information about tariffs was taken from previous FOX Television Station reporting and from The Associated Press. This story was reported from Detroit.
