If you are wondering why prices at Walmart might start creeping up, the answer lies in one word — tariffs. On Thursday, Walmart, the largest retailer in the United States, made it clear that it might not be able to shield you from upcoming price increases due to ongoing uncertainty around tariffs.
Walmart CEO Doug McMillon said, “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.”
In simple terms, the cost of importing certain goods is going up, and while Walmart is trying to protect its customers, it may not be able to keep prices stable for long.
When will the Walmart price increases happen?
You might not notice it right away, but according to Walmart’s Chief Financial Officer John David Rainey, price hikes could begin as early as the end of May. That means your next grocery or electronics run might cost a bit more than usual.
These changes are tied directly to the new tariff rates announced recently. Although the U.S. reduced the tariff on cheaper goods from China from 120% to 54%, that is still a significant cost that Walmart has to account for.
What items at Walmart are likely to get more expensive?
While Walmart has not released an exact list, the products most affected by tariffs are those imported from countries like China and Mexico. So you might see changes in prices for things like:
- Electronics
- Home goods
- Sporting equipment
- Some toys and apparel
General merchandise categories like these usually have higher margins but are now under pressure because of trade costs. On the other hand, grocery and health-related products continue to perform well and might be less affected.
How will this affect you as a shopper?
If you shop at Walmart regularly, this might mean higher prices on the items you use every day. While the increases may be small at first, they could add up over time.
But Walmart is not giving up on keeping you happy. The company said it “will play offense” by making strategic investments to keep its value strong. They are trying to walk a fine line — keeping prices low while still covering their costs.
What is Walmart doing to handle these cost increases?
Walmart is focusing on two things:
- Boosting its e-commerce: Online sales grew 22% last quarter, and for the first time, their e-commerce business in the U.S. was profitable for a full quarter.
- Buying more locally: About two-thirds of what Walmart sells in the U.S. is made, grown, or assembled here. That helps reduce some of the pressure from tariffs on imported items.
Even with all the challenges, Walmart is confident about its future. It expects net sales to grow by 3.5% to 4.5% in the second quarter.
