Walmart announces price hikes
NEW YORK — Volley after volley of tariffs — and at times on-again, off-again trade actions — have put companies around the world on edge. And a handful of major retailers have already raised prices across the U.S., or warned of future hikes.
President Donald Trump has slapped new import taxes on nearly all of America’s trading partners and a range of sector-specific goods in recent months — all while some targeted countries, notably China, have responded with their own retaliatory duties. While many of the steepest tariffs have since been paused or reduced, scores of other remaining levies have piled up on businesses.
That’s because companies that buy products made abroad pay the tariffs imposed on them — and, as a result, face higher costs that are typically passed on to consumers. Trump has argued that his new duties will bring manufacturing and money back to the U.S. But since so much of what we buy today relies on a global supply chain, economists have long-warned that such sweeping tariffs will mean more expensive prices from the grocery aisle to the auto repair shop.
Many businesses (and their customers) are already facing that reality.
Here’s some big-name retailers that have recently announced or anticipate price hikes amid the ongoing trade wars:
Walmart became the latest to join the list on Thursday — when the nation’s largest retailer said it must raise prices due to higher costs from tariffs.
While Walmart has built in hedges against some tariff threats, with two-thirds of its merchandise sourced in the U.S., it still isn’t immune. Higher prices began to appear on Walmart shelves in late April and accelerated this month, company executives said Thursday. However, a larger sting will be felt in June and July, just when the back-to-school shopping season goes into high gear.
John David Rainey, the company’s chief financial officer, emphasized that prices are going up on many necessities.
The price of bananas, imported from Costa Rica, went up to 54 cents per pound from 50 cents per pound, for example. And he thinks that China-made car seats, which currently sell for $350 at Walmart, will likely go up another $100.
“We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” Rainey told The Associated Press.