Walmart announced Thursday it will raise prices due to rising costs from President Trump‘s ongoing trade war, signaling that tariffs are already squeezing the economy and consumers. The retail giant said the price hikes will roll out this month and into summer.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” said CFO John David Rainey. CEO Doug McMillon added that Walmart will do its best to keep prices low, but said the company can’t absorb all tariff-related costs due to tight retail margins.
Walmart reported its Q1 profit slipped to $4.45 billion, down from $5.10 billion a year ago. The company withheld a profit outlook due to ongoing uncertainty around the U.S.-China trade relationship.
Although the Trump administration recently paused some tariffs for 90 days and reduced rates on Chinese imports from 145% to 30%, uncertainty remains high as trade talks continue.
Despite pressure, Walmart expects sales growth of 3.5–4.5% this year.
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