Walmart to Raise Prices on Select Items Starting Late May Amid U.S. Tariffs

Walmart, the nation’s largest retailer, has announced it will raise prices on select items beginning in late May, citing the financial strain caused by recent U.S. tariffs on imported goods. The move, confirmed by company executives during Thursday’s quarterly earnings call, marks a significant shift for a retailer long known for its commitment to "everyday low prices" and signals the broader impact of ongoing trade tensions on American consumers.

Tariffs Prompt Price Hikes

Walmart executives explained that the tariffs, particularly those targeting Chinese imports, have created cost pressures too great for the company to absorb entirely. While the U.S. and China recently agreed to a 90-day truce that reduced tariffs on Chinese goods from 145% to 30%, Walmart’s leadership said even these lower rates are "still too high" for the company to maintain current pricing on all products.

"We will do our utmost to maintain our prices at the lowest possible levels. However, given the extent of the tariffs, even at the reduced rates disclosed this week, we cannot absorb all the financial strain due to the reality of tight retail margins," CEO Doug McMillon told investors.

Chief Financial Officer John David Rainey echoed these concerns, warning that "the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb and so I’m concerned that consumers are going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June".

What Items Will Cost More?

While Walmart has not released a full list of affected products, executives highlighted that groceries, home goods, toys, school supplies, and certain imported items-such as bananas, roses, and electronics-are among those likely to see price increases. The company sources products from a global network, including China, Mexico, Vietnam, India, and Canada, all of which are subject to tariffs of at least 10%. Items like steel, aluminum, cars, and auto parts face tariffs as high as 25%.

More than two-thirds of Walmart’s U.S. merchandise is made, assembled, or grown domestically, which has shielded the company from some of the trade war’s impact. However, for many categories, especially where no U.S. suppliers are available, the cost burden will be passed on to shoppers.

Political and Economic Fallout

The announcement has sparked a public dispute with President Donald Trump, who on Saturday insisted that Walmart should "eat the tariffs" and not pass costs onto consumers. Trump’s comments reflect a broader debate over who ultimately bears the burden of tariffs-businesses, foreign exporters, or American shoppers. Economists warn that the impact will fall most heavily on lower- and middle-income Americans, who make up Walmart’s core customer base.

Despite the political pressure, Walmart executives maintain that the company has little choice. "We’re striving to manage this situation as effectively as possible," Rainey said, "but this is somewhat unprecedented regarding the rapidity and scale of the impending price increases".

Looking Ahead

Walmart’s price hikes are expected to roll out nationwide by the end of May, with more significant increases anticipated in June as the company adjusts to the new cost realities. The retailer has pledged to continue absorbing some of the tariff-related expenses and to keep food and essential consumables as affordable as possible, but acknowledges that some price increases are now unavoidable.

With over 4,600 locations across the U.S. and nearly 95% of Americans shopping at Walmart at least twice a year, the effects of these price hikes will be felt widely, underscoring the far-reaching consequences of the ongoing trade disputes for American households.