America’s largest retailer, Walmart is raising prices because of tariffs. CEO Doug McMillon said that tariffs have created pressures for the company and it’s seeing its “costs increase each week.” CNN’s Vanessa Yurkevich reports.

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

Global Tariffs

Walmart, the largest retailer and employer in the United States, has announced it will be raising prices on some products as a result of tariffs. While the company reported strong sales growth in the second quarter, its profits did not meet Wall Street expectations, leading to a drop in its stock price. 

Despite these challenges, Walmart's CEO stated that the impact of tariffs has been gradual and that the company has been able to mitigate some price pressures by bringing in inventory ahead of tariff hikes. Walmart has also raised its full-year economic outlook, citing its ability to absorb price increases better than other retailers, and expects continued growth despite the need for some price hikes.

Walmart is getting hit by Trump’s tariffs

more breaking news coming into the Situation Room right now. Walmart warning this morning, it's raising some prices because of tariffs. This comes with the company just releasing a new report about its outlook for the rest of the year. I want to go live right now to CNN business and politics correspondent Vanessa Jurkiewicz in New York. Vanessa, you were on that call. What more can you tell us? Well, America's largest retailer, largest employer, and really a bellwether for the U.S. economy, posted strong sales growth in the second quarter, but definitely faced some headwinds from tariffs. And we saw that profits in the second quarter did not meet Wall Street's expectations. And that's actually why you see Walmart stock down right now about four and a half percent. Listen, tariffs was the big point of conversation on this one hour call with investors. A lot of questions about what price pressures were going to be trickling down to consumers. You had the CEO, Doug McMillan, of the company saying that so far tariff impacts have been gradual, so consumers haven't reacted so much to price hikes. But they're now putting out post-tariff inventory, and they're going to see price level increases on a week-to-week basis. So that's obviously concerning for the company. On that full screen you just had up there, another point on the call was, despite these price hikes, they have seen resiliency from the U.S. consumer. Ultimately, Walmart still has some of the best prices, and that's why you're seeing increases in the grocery department. You're seeing increases in consumer spending on e-commerce. They did bring in a lot of inventory ahead of tariff hikes, and that's why they've been able to mitigate a little bit better. Walmart also raising their full-year economic outlook, talking about being able to mitigate some of these price pressures a lot better than other retailers. Walmart, Wolf, obviously is in a much better position because of size and scope to absorb some of these price pressures because of tariffs. A big comparison to just yesterday with Target talking about the loss of sales in the second quarter and seeing consumers pulling back. Walmart saying that they are expecting to see growth the rest of this year despite having to raise prices on some of their items, Wolf.

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Walmart is getting hit by Trump’s tariffs

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