Walmart is raising prices at least twice this year | Credits: JRomero04/Shutterstock
There’s no denying it, says CNN, President Donald Trump’s sweeping worldwide tariffs are raising prices. “The list of companies announcing price changes as a result is equally daunting,” the news outlet added.
Trump has imposed 10 per cent tariffs on most imports, although products from China face a 30 per cent levy upon entry to the United States.
Most retailers refuse to, as Trump has suggested, “eat” the additional costs caused by those import taxes, which means that from groceries and clothing to toys and cars could cost Americans more very soon. Walmart recently announced on April 15th that it would raise the prices on many items, mostly from China, because Trump’s tariffs are simply “too high.”
“We will do our best to keep our prices as low as possible,” Walmart CEO Douglas McMillon said in an earnings call. “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.”
‘Eat the tariffs’
Trump said on Truth Social that “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS.’”
Truth is the Walmart owners, The Waltons, were named by Bloomberg the richest family in the world in 2024 with a net worth of over $432 billion. In early 2024, Forbes said their total wealth was $267 billion, which means their net worth increased by nearly $125 billion in one year.
Regardless, Walmart said price changes will likely come into effect by the end of May and much more in June, John David Rainy, the retailer’s Chief Financial Officer, told CNBC.
Electronics goods chain Best Buy also announced price hikes in May.
Temu, Shein and others
Temu and Shein announced price modifications starting last month. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising quality, we will make price adjustments starting April 25, 2025,” Temu wrote.
Ford and Subaru were hit with a 25 per cent tariff, and most auto parts they use face a similar import tax, which means their prices could rise by as much as 1.5 per cent, Ford’s CFO Sherry House said.
Subaru said it would undoubtedly have to increase US prices to “offset increased costs,” caused by the president’s tariff war.
Procter & Gamble, Stanley Black & Decker, and Adidas all face the same challenges. They all increased prices in April and warned of more increases by the end of the year.
