Walmart Warns Prices Will Rise Despite Tariff Cuts

Walmart reported strong first-quarter results with revenue growth and a profitable e-commerce segment, but executives warned that customers should expect higher prices due to tariffs imposed under the Trump administration, which retailers cannot absorb alone. CFO John David Rainey and CEO Doug McMillon emphasized that these tariff-driven cost increases will become more pronounced starting in May and June, impacting prices across Walmart stores despite the company's efforts to maintain low prices and gain market share. While grocery and pharmacy sales remained robust, general merchandise sales softened, and Walmart's online business showed promising profitability. The company also announced changes to its Walmart+ Assist program, reintroducing a $6.99 fee on orders under $35 for members using EBT cards, a move that has sparked consumer backlash over its impact on lower-income shoppers. Meanwhile, a new bill targeting grocery stores’ self-checkout policies would exempt major retailers like Walmart, highlighting ongoing shifts in retail operations amid economic and legislative pressures. Overall, Walmart’s leadership signals that while the company remains a retail powerhouse, consumers should prepare for higher costs and evolving service fees amid challenging economic conditions.