Walmart Signals Potential Price Hike Due to Tariff Impacts

Even with a robust start to 2025 and a notable 20% surge in online shopping within the U.S., Walmart is hinting at potential price hikes due to tariffs imposed during the Trump era.

According to The New York Times, WalmartS sales in U.S. stores climbed by 3% in the first quarter, marking its e-commerce sector’s first profitable quarter ever. The retail behemoth also surpassed earnings forecasts and anticipates net sales growth of up to 4.5% for Q2 of 2025. In an interview with CNBC on May 15, CFO John David Rainey mentioned that consumer habits have remained stable despite the economic turbulence caused by these tariffs.

Though, he cautioned that shoppers shoudl brace for higher prices due to current tariff impacts starting late May, with even steeper increases expected come June.

“we’re built around offering low prices every day, but these hikes are beyond what any retailer can manage,” he remarked.

A few days after Trump unveiled his “Liberation Day” tariffs in early April, CEO Doug McMillon reassured investors that Walmart was well-equipped to mitigate tariff effects since about two-thirds of its products sold domestically are sourced from within the U.S. Additionally,profits from its subscription service Walmart+ and advertising platform Walmart Connect have been on the rise; Q1 saw a remarkable 31% increase year-over-year for Walmart Connect.

If price adjustments do occur, analysts suggest that non-essential items like gadgets and toys—many imported from China—might see initial increases. However, they also noted that consumer preferences regarding specific products will play a crucial role in determining pricing strategies moving forward.