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6d ago

Walmart to Raise Prices as Tariff Costs Escalate

The retailer warns consumers to expect price increases starting late May, citing the impact of U.S. tariffs on Chinese imports despite a temporary reduction.

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© Photo by FREDERIC J. BROWN/AFP via Getty Images)
FILE – Empty shopping carts are collected from the parking lot at Walmart store in Burbank, Calif., on Thursday, April 10, 2025. (AP Photo/Damian Dovarganes, File)
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Overview

  • Walmart executives confirmed that price hikes will begin at the end of May, with further increases expected in June, as tariffed goods reach store shelves.
  • The company attributes the price increases to the high cost of tariffs, including a 30% levy on Chinese imports, which it cannot fully absorb due to narrow retail margins.
  • Despite these challenges, Walmart maintained its full-year sales and profit guidance, projecting 3% to 4% revenue growth for 2025.
  • Efforts to mitigate tariff impacts include supply chain adjustments, such as substituting tariffed materials like aluminum with alternatives like fiberglass.
  • Walmart reported strong Q1 performance, including 4.5% same-store sales growth in the U.S. and the first profitable quarter for its e-commerce business.