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Walmart has confirmed that it will raise its prices this month as a direct result of Trump’s tariffs.
The grocery giant said it is passing along the ‘unprecedented’ costs of Trump’s trade war on to consumers.
However, the retailer predicts the worst is yet to come.
‘The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,’ Walmart’s chief financial officer John David Rainey told the Wall Street Journal.
Walmart reported strong sales in its first quarterly earnings call of the year on Thursday.
The retailer did not give a profit forecast for the second quarter as it is deciding whether to absorb some tariff costs to keep its prices lower than competitors, Rainey said.
Walmart has already been steadily raising some of its prices as suppliers pass on their own higher costs.
Rainey pointed out that bananas have already been pushed up to 54 cents a pound from 50 cents.
The price of some grocery items have already risen as a result of tariffs
Walmart said the US-China trade deal agreed earlier this week will not be enough to halt price rises.
As part of the deal the U.S will temporarily lower tariffs on Chinese imports from 145 percent down to 30 percent.
Walmart is particularly exposed to Trump’s current trade policies since it imports 60 percent of its goods from China.
‘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’s CEO Doug McMillon told investors on Thursday’s earnings call.
McMillon joined the bosses of Target and Home Depot to lobby against tariffs at a private meeting with Trump in the White House last month.
In a closed-door meeting with President Donald Trump, the CEOs warned that his aggressive trade policy would disrupt supply chains.
‘We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,’ Walmart said at the time.
Target issued a similar statement adding that the meeting was ‘to discuss the path forward on trade, and we remain committed to delivering value for American consumers.’
