BENTONVILLE, Ark. — Walmart will begin raising prices on several products as early as late May due to higher import tariffs, despite a recent 90-day pause on some duties.
Chief Financial Officer John David Rainey said Thursday the company will need to pass on some costs to consumers due to tariffs that, until recently, reached as high as 145% on Chinese imports. Even with softer tariffs, the current reduced level is 30%, with a 10% duty on imports from several other countries.
“We’re trying to navigate this the best that we can,” Rainey said in an interview with CNBC. “But this is a little bit unprecedented in terms of the speed and magnitude in which the price increases are coming.”
He said shoppers will likely see noticeable price hikes beginning in late May and continuing into June, particularly during the company’s fiscal second quarter.
Walmart CEO Doug McMillon said Thursday that tariffs are affecting a range of imported products, including bananas, avocados, coffee and roses. Toys and electronics, primarily sourced from China, are also impacted. Walmart has already begun receiving goods for the back-to-school season that were subject to higher rates earlier this year.
“What we’re looking at is upward pressure that began in April and continues throughout the entire year on things that are imported,” McMillon said.
Despite cost pressures, Walmart maintained its full-year forecast. Rainey said higher prices may drive more value-conscious consumers to the retailer.
“There might be some areas where we want to play offense,” he said. “We might absorb some of that impact in the short term for the benefit long term.”
