Walmart raises prices: How much does it have to pay if consumers don’t “eat tariffs” as Trump wants?

Walmart shoppers may soon find themselves paying more for everyday items from toys to tomatoes as retail giants prepare for some rising import fees triggered by tariffs. Although the company has temporarily reduced its responsibilities for Chinese imports, the company said the pressure on higher tariffs in dozens of countries is too great to fully absorb.

“We are trying to do our best,” Walmart Chief Financial Officer John David Rainey told CNBC in an interview. The current tariff environment is “unprecedented in terms of how quickly and how much the price is rising.”

He said shoppers can expect to see significant growth by the end of May, and June is more likely. Walmart, which generated a large portion of its U.S. sales from imported goods, confirmed it will try to mitigate the impact, but not without impacting consumer prices.

From Avocado to Xbox consoles: What’s Becoming More Expensive?

Although about one-third of Walmart merchandise is sourced domestically, the rest comes from around the world, including China, Mexico, Vietnam and India. CEO Doug McMillon stressed that commodity tariffs in countries such as Colombia, Costa Rica and Peru are already affecting the cost of fresh produce, such as bananas and avocados, as well as coffee and flowers.

In categories like electronics and toys, categories that rely on Chinese imports have begun to build cost pressure. Walmart started feeling tariff rates as early as April, when back-to-school goods began to arrive in the U.S., and the recent tariff probation reduced tariffs on many Chinese items to 30% of 90 days, while items arriving before this change were taxed at higher rates.

McMillon has not made a specific estimate of what customers might have to pay, but some supplier brands have moved. Microsoft has raised the suggested retail price for Xbox consoles and accessories, and Mattel says it will increase the price of choosing toys — even before the recent tariff release. To manage the rising costs, Walmart is adjusting its strategy: ordering smaller quantities of high-impact items, encouraging suppliers to transfer from aluminum-collected materials such as aluminum and alternatives. Renney still admits: “There may be areas where we want to attack…we may absorb some of these effects from the short term in the long term.”

Trump: Walmart should “eat tariffs”

In Washington, the decision to raise prices has not yet attracted attention. President Donald Trump targeted Walmart over the weekend, accusing the company of raising prices using tariffs as an excuse and urging it to deduct fees.

Trump posted on the Truth Society “Walmart should stop trying to use tariffs as a reason to raise prices.” “Last year Walmart made billions of dollars, far exceeding expectations. Walmart and China should ‘eat’ tariffs’ without charging any fees to valuable customers. I will watch, and your customers will do the same!!!

Trump’s sharp remarks are because his administration’s trade policies, including tariff adjustments and negotiations with China, directly affect pricing decisions across the retail sector.

Despite the friction, Walmart has not scaled back its prospects. The company reiterated its full-year sales forecast, with betting that price-conscious consumers will continue to flock to its stores and online platforms, especially if competitors are forced to raise prices more.

(with agent input)