Walmart reported a robust quarterly performance on Thursday, yet concurrently cautioned about impending price escalations stemming from President Donald Trump’s tariffs imposed on China and other major trade partners.
“We will endeavor to maintain our pricing at the lowest possible levels; however, given the sheer scale of the tariffs, even with the reduced rates, we are unable to fully absorb the resultant pressure,” Chief Executive Doug McMillon stated during a conference call with financial analysts.
Executives from the large retail chain expressed their approval of the recent de-escalation in the U.S.-China trade dispute, but maintained that the existing tariffs on Chinese goods remain excessively high. These tariffs disproportionately affect product categories such as electronics and toys.
Consumers can anticipate the initial phase of price increases to commence in the latter part of May, with a more pronounced impact expected in June, according to Chief Financial Officer John David Rainey.
“When faced with a 30 percent tariff on specific items, consumers should anticipate a double-digit percentage increase in prices,” Rainey conveyed in an interview with Yahoo Finance.
Walmart officials indicated that the extent to which tariff-related costs are passed on to consumers will vary depending on the specific product.
Mr. Rainey also noted that Walmart perceives an opportunity to adopt a strategic “offensive” stance with certain product lines, implying that the retail giant could absorb a larger portion of the tariff burden to maintain lower prices and thereby expand its market share.
“We may witness elevated prices on certain non-tariffed items, alongside stable or even reduced prices on select tariffed products,” commented Arun Sundaram, Senior Equity Analyst at CFRA Research.
*
Email *
Website
