The world's largest retailer says new import tariffs will force price hikes, raising concerns about inflation and how it could affect American shoppers. Jo Ling Kent reports.

Washington

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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Walmart's CEO has stated that the retailer will raise prices in response to import tariffs introduced by the Trump administration. According to company leadership, these tariffs are prompting cost increases across a range of products, which may soon be passed on to consumers. Walmart's Chief Financial Officer indicated that the price adjustments could take effect within weeks and would impact items broadly throughout the store.

The company is focusing on limiting price increases for essential products such as food, while other categories like toys and electronics are more likely to see higher costs. These decisions come as retailers face ongoing uncertainty regarding tariff rates, especially while making large orders for seasonal merchandise such as school supplies and holiday goods.

Walmart leadership cited the complexity of the tariff situation, noting that a recent pause in tariffs has not provided the clarity needed for long-term planning. This uncertainty has led to reduced activity at ports, as businesses hesitate to import goods that could be subject to higher tariffs in the future. The retailer warned that the situation could contribute to inflation if higher costs are widely passed on to consumers.

The impact of these tariffs and subsequent price changes at Walmart is likely to extend to other retailers and the small businesses in their supply chain, given Walmart's scale in the retail sector.



Walmart CEO warns prices will rise due to Trump tariffs

Walmart is famous for affordable prices, but the CEO of the world's largest retailer announced his company will have to start charging you more That's because of President Trump's tariffs That's raising new worries about inflation and how it could impact you senior business and technology correspondent Joe Lincoln. It's here Joe Good morning. So when are these price hikes come and how much higher are we talking? We were hearing from the CFO that these price hikes could be coming in the next few weeks and we're talking about items Across the board what Walmart is trying to do is they're telling consumers We're trying to control what we can control, but we can't control everything when it comes to these prices So they're seeing price hikes across the board that they may have to pass on to consumers They're trying to keep though those food prices low because obviously that's an essential But the CEO Doug McMillan on the call yesterday morning was telling all of us that he is seeing price hikes and we're talking about Bananas avocados coffee Roses, they're trying to keep those essentials low by passing on a little bit more of that price hikes to maybe other items I mean, yeah another essential I always associate with Walmart. Is that back-to-school moment? You're getting folks you're getting pens pencils What's gonna happen there? Yeah So the big question is what tariff number should they be calculating as they place these big orders for back-to-school Halloween Christmas, right and so they can't they don't know they don't have a crystal ball So the CEO is saying look we are going to do our best We're gonna make some assumptions, but that's a big challenge And when the Walmart CEO says that the world listens to the world's biggest retailer it affects not just them But all the small businesses that they're sourcing from now speaking of the world listening consumers are thinking to themselves I thought a deal was done. So what's the deal with these prices? Why the the the tariff truce? Why didn't that have an impact on what's happening right now with Walmart? Look there was that 90-day pause on China. We're in that right now But there's still so much uncertainty as to what happens after the 90 days be so these businesses can't plan and as a result consumers may have to pay more for items and you were also we're also going to probably see some kind of rush or Surge on the ports because the ports have seen traffic come down because all these businesses are like, oh we can't spend money We can't afford the tariffs now that there's been changes There was a rush to beat the clock over the next 90 days, right? So this definitely could hit inflation so far We haven't seen that but in the next couple of months you might be seeing that materialize on those prices So you said Walmart's gonna spread these price hikes basically around different products But are there certain products that especially come from China that you know are gonna get targeted? We do know that we expect to see prices go up for toys and electronics Walmart's trying to minimize the cost on essentials like food Okay, I I got a bunch of old toys that at a place that I go to in the summertime from my childhood I turned one over last summer. I was like shocked to see it said made in USA. I was like, Michigan Wow Maybe that'll change again. I don't know back really Jill and Ken. Thank you so much. Thanks guys

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