Attention Walmart shoppers - prices are going up.
The nation’s largest retailer is raising prices due to the tariffs implemented by President Donald Trump.
According to multiple outlets, Doug McMillon, Walmart’s chief executive, told analysts, “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.”
In an interview with CNBC, John David Rainey, Walmart’s chief financial officer, said the high prices could come as soon as next month.
This comes after the retailer posted strong sales in the year's first quarter and said it expects growth of between 3.5 and 4.5% in the second quarter; however, profits fell.
Retail analyst Burt Flickinger told KNX News’ Jon Baird the tariffs are an excuse to raise prices.
“It's a reason, but not a reason for 100% of the current price increases,” he said. “It might be a reason for 10 to 15%, but not 100% of the price increases.”
Flickinger also added that Walmart isn't doing well in other parts of the world, and raising prices may be a way to mitigate that.
Baird spoke with shoppers outside a Walmart location in Harbor Gateway. While some shoppers say they’ve seen prices inching up on some items, Demetrius from Gardena said some items have stayed the same price-wise.
“I just bought oil and stuff like that for my car today. It's pretty much about the same as last time before the tariffs, so not yet,” he said.
The tariffs were announced in April and included a 145% tariff on Chinese imports as well as a 25% tariff on goods from Canada and Mexico that are not in agreement with the United States-Mexico-Canada Agreement.
On Monday, a 90-day truce in the United States and China trade was announced.