Walmart confirms worst fears about tariffs
Walmart has confirmed that it is raising prices this month as a direct result of Trump's tariffs.
The grocery giant said it is passing along the 'unprecedented' costs of Trump's trade war on to consumers.
And bosses at the retailer — which imports 60 percent of its goods from China — predict the worst is yet to come.
'The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,' Walmart's chief financial officer John David Rainey told the Wall Street Journal after the retailer announced strong sales in the first quarter of 2025.
Walmart said the recently announced US-China trade deal — which will temporarily reduce tariffs on Chinese goods from 145 percent to 30 percent — won’t be enough to prevent further price hikes.
Walmart has already been steadily raising some of its prices as suppliers pass on their own higher costs. Rainey said bananas now cost 54 cents a pound, up from 50 cents — an eight percent jump.
Retail analysts say that may not sound like much, but if similar increases hit other imported essentials — from produce to clothing, electronics, and home goods — shoppers will feel the pinch fast.
Neil Saunders, from Global Data, told DailyMail.com 'all categories will be affected by tariffs'. He explained: 'Produce from overseas will be impacted heavily because margins are low and costs need to be passed across.'
These are examples of how prices might rise at supermarkets in coming months
Walmart president & CEO Doug McMillon
'General merchandise, especially home products and electronics, will also be impacted as they are heavily reliant on overseas production.'
DailyMail.com looked at items that fall under those categories, and estimated what might happen to typical prices at US supermarkets.
Avocados, mostly imported from Mexico, could go from $1.25 each to $1.45 — a 16 percent jump — if transportation and import costs continue to rise.
Coffee beans, often sourced from Latin America and Africa, are expected to be hit. A $9.49 bag of ground coffee might soon hit $10.49, up more than 10 percent, as shipping and raw bean costs rise.
Imported cheeses, like parmesan or brie, are already sensitive to global supply chains. A wedge of imported parmesan that previously sold for $5.99 may now hit $6.79 — a 13 percent hike.
Frozen vegetables, many of which rely on international supply chains for packaging and processing, might rise from $1.50 to roughly $1.62.
For milk, a gallon that once cost $3.89 could jump to $4.25 due to increased transportation costs and pricier packaging materials, much of which come from overseas.
For non-grocery, toasters, microwaves and small kitchen appliances will be among the hardest hit. A basic toaster that cost $29.99 could soon retail for $34.49 — a 15 percent increase — as manufacturers pass on higher import fees.
Neil Saunders, from Global Data, told DailyMail.com 'all categories will be affected by tariffs'
The price of some grocery items have already risen as a result of tariffs
Walmart is particularly exposed to Trump's current trade policies since it imports 60 percent of its goods from China
Walmart could still gain market share from the recent chaos, experts claim
Even bedding and towels, often made in countries like India or Pakistan, will go up. A set of sheets at $49.99 might now ring in at $56.99 just to keep up with the cost of materials and shipping.
Toilet paper isn’t off the hook either. With pulp, packaging, and transportation all impacted by tariffs, a 12-pack that once rang up at $10.99 could increase to $11.89 — an 8.2 percent rise — potentially hitting families in both comfort and cost.
Walmart said the recently announced US-China trade deal — which will temporarily reduce tariffs on Chinese goods from 145 percent to 30 percent — won’t be enough to prevent further price hikes.
'We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins,' Walmart's CEO Doug McMillon told investors on Thursday's earnings call.
Despite the price hikes, Walmart reported strong sales and is forecasting gains in market share. The company said inflationary pressure could actually benefit its bottom line by drawing in more price-sensitive shoppers — even from higher-income households.
Last month, McMillon joined the bosses of Target and Home Depot to lobby against tariffs at a private meeting with Trump in the White House last month.
In a closed-door meeting with President Donald Trump, the CEOs warned that his aggressive trade policy would disrupt supply chains.
'We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,' Walmart said at the time.
Target issued a similar statement adding that the meeting was 'to discuss the path forward on trade, and we remain committed to delivering value for American consumers.'
