(LOOTPRESS) – Walmart, the nation’s largest private employer and a bellwether for the American economy, is sounding the alarm on potential price increases as soon as the end of May, citing rising costs from tariffs and ongoing global trade uncertainty.
In a statement released alongside the company’s first-quarter earnings report on Thursday, Walmart CEO Doug McMillon acknowledged the growing pressure. “We will do our best to keep prices as low as possible,” he said, “but even with the recently reduced tariffs, the impact is too significant for us to fully absorb. Retail margins are already razor thin.”
Chief Financial Officer John David Rainey added in an interview with CNBC that customers may start noticing price bumps in the coming weeks — especially on imported goods impacted by the tariff adjustments.
The warning comes in the wake of an executive order signed by President Donald Trump this week, lowering tariffs on low-cost goods from China from 120% to 54%. While the reduction is significant, Walmart said the financial burden remains substantial. CEO McMillon also recently met with the president to share Walmart’s perspective on how shifting trade policies are affecting retailers and consumers alike. A company spokesperson described the discussion as “productive.”
Despite the uncertainty, Walmart says it’s going on the offensive — planning strategic investments to maintain its value edge and strengthen its consumer appeal. About two-thirds of Walmart’s U.S. spending goes toward products made, grown, or assembled domestically, but the rest comes from global partners — with China and Mexico among the biggest suppliers.
Financially, Walmart held steady this quarter. Revenue hit $165.6 billion, in line with analyst expectations. Adjusted earnings per share edged past forecasts. Notably, Walmart’s e-commerce business turned a profit for a full quarter both in the U.S. and globally for the first time, with digital sales climbing 22%.
Same-store sales in the U.S. rose 4.5%, led by strong performance in groceries and health-related products. However, general merchandise categories — like electronics, home goods, and sporting equipment — underperformed. That slump was partially balanced by solid sales in toys, automotive, and kids’ apparel.
Still, Walmart acknowledged the volatility of the current business climate. “The lack of clarity in today’s operating environment makes short-term forecasting extremely difficult,” the company said in its report.
Walmart expects net sales to grow between 3.5% and 4.5% in the second quarter, and 3% to 4% for the full fiscal year. But with trade talks evolving day by day, company officials admit that the range of potential outcomes — especially for operating income — is wide.
For now, Walmart is bracing for impact, shoppers are bracing for potential price hikes, and everyone is watching the next move in the high-stakes global tariff chess game.
