Walmart has warned that U.S. shoppers could soon see higher prices as the retailer manages the impact of new import tariffs introduced earlier this year.
Walmart, the world’s largest retailer, said Thursday that it may need to raise prices in the coming weeks due to rising import costs tied to recent tariff changes. Despite a strong quarter with $165.6 billion in sales - up 2.5 percent year-over-year - CEO Doug McMillon confirmed the company is feeling cost pressures that may soon affect consumers.
Analysts have generally viewed Walmart as more protected from global trade shifts due to its strong grocery business, which accounts for about 60 percent of its revenue and is largely U.S.-sourced. The retailer’s growing popularity among higher-income shoppers, who contribute through memberships and delivery fees, also gives it flexibility to keep prices steady on essentials.
Still, Walmart’s warning indicates broader challenges across the retail sector. “If Walmart says they’re struggling [on price], then you know everyone else is going to struggle a little bit more,” said CFRA Research analyst Arun Sundaram.
Walmart has historically gained market share during economic uncertainty, such as in 2008 and during the pandemic. CFO John David Rainey said the company plans to “play offense” again, even if it faces short-term financial impacts.
Its strong position is supported by a profitable U.S. e-commerce segment - which grew 21 percent last quarter - and a customer base willing to pay extra for faster delivery. “Walmart is typically the last to raise prices,” said Telsey Advisory Group analyst Joe Feldman. “They’re better positioned to handle it than anybody else.”
Tariffs on goods from countries like Vietnam and Taiwan are expected to affect non-grocery categories such as clothing and electronics. But Walmart’s heavy focus on food and its diversified sourcing reduce exposure compared to competitors.
Still, some imported groceries - such as bananas, avocados, and coffee - have already become more expensive due to tariffs on goods from countries like Costa Rica and Colombia. McMillon said Walmart has worked for years to shift sourcing from China to other countries, a process that remains complex.
While Walmart imports fewer goods from China than competitors like Amazon and Target, the company is not immune. Analysts estimate about 10 percent of its imports come from China, compared to 20 percent for Amazon and 30 percent for Target.
Walmart’s large scale gives it key advantages, including lower shipping costs and the ability to adjust sourcing quickly through its supplier networks. The company pays up to $600 less per shipping container and can shift production from one country to another with fewer disruptions.
Even as costs rise, Walmart remains committed to keeping food prices stable and distributing import-related expenses across broader product categories. “We’re not fully immune,” Rainey said, “but we’re better positioned than most.”
Azerbaijan’s Foreign Ministry on Saturday voiced deep concern over the escalating tensions following the United States’ military strikes on Iranian nuclear facilities, calling on all sides to prioritize diplomacy over confrontation.
The Pentagon concluded a high-stakes press briefing Saturday afternoon following the U.S. strikes on Iran’s nuclear facilities, outlining the scale and success of the mission while stressing the door remains open to diplomacy.
Türkiye has voiced strong concern following the United States’ strikes on Iranian nuclear facilities, warning that the action could dangerously escalate the conflict and trigger a global crisis.
Global investors are bracing for significant market turmoil when trading reopens, with analysts predicting a sharp spike in oil prices and a flight to safe-haven assets following the United States' announcement of military strikes against three Iranian nuclear facilities.
Iran’s top diplomat on Sunday issued a stark condemnation of the United States following overnight military strikes on Iranian nuclear facilities, declaring that Washington had crossed a "very big red line" and would be held "fully responsible" for the consequences.
The United States has clarified that its recent military strikes on Iranian nuclear facilities were not intended to overthrow the Iranian government, but to neutralise what it described as urgent threats to national security, amid rising tensions and fears of broader regional conflict.
Iran's top security body, the SNSC, will decide on closing the Strait of Hormuz, a critical oil and gas chokepoint, after parliament's reported approval. A Revolutionary Guards commander stated the measure is "on the agenda," signaling escalating tensions.
Azerbaijan’s Foreign Ministry on Saturday voiced deep concern over the escalating tensions following the United States’ military strikes on Iranian nuclear facilities, calling on all sides to prioritize diplomacy over confrontation.
The Pentagon concluded a high-stakes press briefing Saturday afternoon following the U.S. strikes on Iran’s nuclear facilities, outlining the scale and success of the mission while stressing the door remains open to diplomacy.
Türkiye has voiced strong concern following the United States’ strikes on Iranian nuclear facilities, warning that the action could dangerously escalate the conflict and trigger a global crisis.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
The USS Nimitz is heading to the Middle East amid tensions between Israel and Iran. The U.S. aircraft carrier has a decades-long history in the region, from the 1979 hostage crisis to modern deployments, often serving as a key asset during periods of rising friction with Iran.
Germany’s federal government spent over 1.2 billion euros on software, licenses and IT services in 2024, more than 25% higher than the previous year.
Japan’s core inflation rose to a more than two-year high in May, exceeding the central bank’s 2% target for over three years and increasing pressure on the Bank of Japan (BOJ) to resume rate hikes.
Two Nigerian communities will take Shell to trial in the UK in 2027 after winning a court ruling over Niger Delta oil pollution.
The European Investment Bank (EIB) announced Friday it is raising its financing ceiling to a record €100 billion to accelerate investments in defence, energy security and Europe’s technological leadership.
Meta has teamed up with Oakley to release AI-powered smart glasses, expanding its push into wearable tech after the success of Ray-Ban Meta glasses. The social media company is expanding its partnership with Oakley and Ray-Ban-parent EssilorLuxottica.
The United States has clarified that its recent military strikes on Iranian nuclear facilities were not intended to overthrow the Iranian government, but to neutralise what it described as urgent threats to national security, amid rising tensions and fears of broader regional conflict.
Iran's top security body, the SNSC, will decide on closing the Strait of Hormuz, a critical oil and gas chokepoint, after parliament's reported approval. A Revolutionary Guards commander stated the measure is "on the agenda," signaling escalating tensions.
Azerbaijan’s Foreign Ministry on Saturday voiced deep concern over the escalating tensions following the United States’ military strikes on Iranian nuclear facilities, calling on all sides to prioritize diplomacy over confrontation.
The Pentagon concluded a high-stakes press briefing Saturday afternoon following the U.S. strikes on Iran’s nuclear facilities, outlining the scale and success of the mission while stressing the door remains open to diplomacy.
Türkiye has voiced strong concern following the United States’ strikes on Iranian nuclear facilities, warning that the action could dangerously escalate the conflict and trigger a global crisis.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment