Walmart Will Raise Prices in the Next Few Weeks Because of Tariffs

Walmart is set to increase its prices by the end of the month due to the ongoing trade war, and there may be further increases coming in June.

“We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon said in an earnings call.

The US this week cut import fees from China for the next 90 days from 145% to 30% as the US and China continue to negotiate a long-term trade deal.

In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said tariffs remain “too high” for its business to continue in the same way. “We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” he said.

“It’s more than any supplier can absorb,” he added. “And so I’m concerned that [the] consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”

It’s likely technology and gadgets will be impacted as a lot of that hardware is produced in China, meaning it’s subject to a 30% import fee. We’ve also seen price rises on items such as Microsoft’s Xbox consoles, while Sony’s PlayStation 5 may also see an increase, and Apple’s next iPhone may jump up, too.

Rainey said that Walmart has also reduced the size of some of its orders with suppliers for items it believes will sell less well after a price increase. That might mean some stock becomes harder to buy across Walmart stores in the near future.

Walmart recently reintroduced a $6.99 delivery fee on orders under $35 for those on its Walmart+ Assist Program. In comments to Mashable, Walmart said the basket fee revival was not related to the tariffs and instead pointed to the fact that its competitors collect the same fees.

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About James Peckham

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I’ve written tech news for over a decade, and as a Reporter at PCMag, I cover the latest developments across the gadgets and services you use every day. Previously, I worked for Android Police, TechRadar, and more.

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