Walmart CFO warns tariff-driven price hikes may begin by late May

Walmart has warned that shoppers will soon see higher prices on a range of products because of new tariffs, with increases likely to begin by late May, according to CNBC. The company’s Chief Financial Officer, John David Rainey, explained that while Walmart has managed to keep prices low despite earlier tariff reductions-such as a temporary 90-day lowering of duties on Chinese imports to 30%-the scale and speed of the current increases are difficult to manage. Walmart is committed to staying competitive and will try to absorb some of the added costs, but customers should expect to notice price hikes on items like bananas, roses, and toys as soon as the end of May.

These changes will likely continue into June as the second fiscal quarter progresses. As the top retailer in the country, Walmart has outlined which products and categories will be most affected, giving shoppers a clearer idea of what to expect in stores nationwide. CNBC also notes that Walmart’s efforts to manage these rising costs are part of a broader challenge facing the retail industry.

According to The New York Times, Walmart has reported steady sales but cautions that its ability to absorb the extra costs from tariffs is limited. The company’s leadership has stated that even with strong performance in areas like groceries and health products, the ongoing trade policies are putting pressure on their profit margins. The tariffs, which affect goods from China and other countries, are causing increased expenses that Walmart cannot fully offset without raising prices for consumers.

The New York Times highlights that Walmart’s warning comes at a time when many American families are already concerned about the cost of living, especially for everyday items. The retailer’s announcement is significant because Walmart often sets the tone for pricing in the broader market, and any changes there are likely to be felt by a wide range of shoppers. The company’s financial officers have emphasized that while they will do their best to limit the impact, the reality is that some price increases are unavoidable and will become more noticeable as the summer progresses.

CBS News adds that Walmart’s decision to raise prices comes despite a recent agreement to lower tariffs on Chinese imports from 145% to 30% for 90 days. The company’s CEO, Doug McMillon, explained that even at these reduced levels, the tariffs still create significant cost pressures, especially for categories like electronics and toys, which rely heavily on imports from China. CBS News points out that the price hikes are expected to take effect later this month, and Walmart is not alone-other major retailers have issued similar warnings as they struggle to manage rising costs from global trade tensions.

Sources:

https://www.cnbc.com/2025/05/15/walmart-price-increases-trump-tariffs.html

https://www.nytimes.com/2025/05/15/business/walmart-earnings-tariffs-consumer.html

https://www.cbsnews.com/news/walmart-tariffs-price-hikes/