Walmart is raising prices, others may follow

Walmart CFO John David Rainey said that US consumers can start seeing price hikes by the end of this month, with further increases in June, despite the temporary reduction of tariffs on Chinese imports from 145% to 30% for 90 days.

In an interview with CNBC, Rainey said the tariff impact is “more than any retailer can absorb.” His announcement comes as Walmart reported its first-ever quarterly profit in the US and global e-commerce sales. However, CEO Doug McMillon said the gain is still not enough to absorb the impact of President Donald Trump’s import tariffs.

Walmart’s Q1 revenue grew 2.5% year-over-year to $165.61 billion, just shy of the $165.84 billion analysts expected—its first revenue miss since February 2020.

With America’s largest retailer raising prices, others could follow suit.

We are seeing price hikes in other industries
Ford already announced price increases on three of its Mexico-produced car models this week.

Footwear brands like On Holding and Birkenstock have said they would raise US prices in the coming months.

Increases in price tags could drive consumer inflation to 3.3% this year, up from 2.3% in April, according to UBS economists.