Walmart Plans Price Hikes in May Amid Trump Tariffs

Walmart plans to raise prices starting in late May due to increased costs from President Donald Trump's tariffs, with price hikes expected to accelerate in June despite recent tariff reductions in a temporary U.S.-China trade deal. Walmart executives emphasized the unprecedented scale and speed of cost increases and noted that narrow retail margins limit their ability to absorb all tariff-related expenses, although the company intends to absorb some costs to maintain competitive pricing. The retailer, benefiting from its strong grocery segment and popularity among higher-income customers, remains somewhat insulated as about 60% of its revenue comes from domestically sourced groceries, reducing exposure to tariffs compared to competitors focused more on imported goods. Walmart's first quarter profit declined, and the company withheld second-quarter profit guidance amid ongoing trade uncertainties, while maintaining its full-year sales and profit forecasts. Despite the challenging environment, Walmart reported solid sales growth and a profitable e-commerce quarter, reflecting consumers' shift towards lower-priced essentials amid economic concerns and inflation fears. Analysts note Walmart's strategy to partially absorb inflationary pressures to gain market share, leveraging its diverse product mix and strong supply chain resilience compared to peers more vulnerable to import tariffs.