A Walmart store in Martinez, California, United States, on Monday, November 18, 2024.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
WalmartFinance Secretary John David Rainey said the retailer may have to raise prices on some items if President-elect Trump’s proposed tariffs take effect.
“We never want to raise prices,” he told CNBC on Tuesday. “Our model is low prices every day. But for consumers, prices may go up.”
Rainey added that it was too early to say which products might be more expensive due to tariffs.
Walmart CFO weighs in on potential policy changes as a company Beat Wall Street’s profit and sales forecasts and raised its full-year forecast.
Walmart’s review is Latest warning U.S. retail leaders on the possible impact of tariffs. During the presidential campaign, Trump stated that he would impose tariffs of 10% to 20% on all imported goods, with tariffs as high as 60% to 100% on goods from China.
In a statement earlier this month, National Retail Federation CEO Matthew Shea described sweeping tariffs as a “tax on American families.” He said this “will drive inflation and price increases and lead to unemployment”.
The prospect of higher prices comes as U.S. inflation has slowed after years of straining consumer wallets.
Other retailers and brands have also spoken out about the potential downsides of tariffs. Elf Beauty CEO Tarang Amin In an interview with CNBC earlier this month, he said If higher tariffs go into effect, the company may be forced to raise prices. footwear manufacturer Steve Madden talk Reduce imported goods As much as 45% of products will come from China next year to avoid financial impact.
Most items sold at Walmart No tariff risk. Rainey said about two-thirds of the items sold at Walmart are made, grown or assembled in the United States
He said Walmart, like other companies, is trying to import products from different parts of the world rather than relying heavily on China or any one country. Rainey added that tariffs imposed during the first Trump administration had caused the company to make adjustments.
“We’ve been living under a tariff environment for seven years, so we’re very familiar with it,” he said. “However, tariffs are inflationary for consumers, so we want to work with suppliers and our own private label brands to try to lower prices.”
Like Walmart, Lowe’s said it has taken steps to diversify its supply chain. This home improvement retailer tackles potential tax issues as it Report earnings Tuesday.
Chief Financial Officer Brandon Sink said that about 40% of the company’s cost of sales comes from Goods from outside the United States, including direct imports and goods from domestic brands. He said the tariffs “will certainly increase the cost of the product,” but added that “the timing and details are still uncertain at this time.”
“We believe we are well prepared should this happen,” he said.
—CNBC’s Gabrielle Fonrouge contributed to this report.
