Walmart wants you to know that even with the trade war deescalation higher prices are inevitable

Walmart, which has become the largest retail store in the country by making low priority prices, has found itself in a rarely: customers warning that prices will increase on goods ranging from bananas to car seats.

Executive officials of the company, which cost 750 billion dollars on Thursday, informed that they were doing everything they can to accommodate the highest costs of the definitions requested by President Donald Trump.

However, given the size of the duties, the highest in the 1930s, the high prices cannot be avoided, and they will already harm Walmart customers with inflation over the past three years.

Trump’s import taxes, which threatened 145 % on Chinese goods, were reduced to 30 % in a deal announced on Monday, with some high tariffs when stopping for 90 days.

On Thursday, CEO of Wall Mart said that these higher prices began to appear on Wall Mart’s shelves in late April and accelerated this month. However, you will start getting the big bite in June and July when the shopping season goes to school.

“We are wireless to maintain the low prices, but there is an end to what we can bear, or any retail dealer for this issue,” financial director John David Riley told Associated Press on Thursday after the company told strong sales in the first quarter.

Rene emphasized that prices are not only more than estimated elements such as annihilation furniture and modern fashion, but also for basic necessities as well. The price of bananas, imported from Costa Rica, rose from 50 cents per pound, to 54 cents. He believes that the car seats prepared in China, which are currently selling $ 350 in Walmart, will cost customers $ 100. Rene said that children’s vehicles are also obtained from China.

High prices reach that many Americans are backing from spending because they are increasingly growing over the economy. A large group of companies including the Mattel Games, Toolmaker Stanley Black & Decker, and ProCter & Gamble giant, have announced prices or higher plans to raise prices.

But Walmart movements are more important given its huge strength in the retail scene. Walmart says 90 % of American families depend on the retail stores of a range of products, and shop more than 150 million customers on their website or in their stores every week. Analysts will dissect profit reports from other retailers including Target and Home Depot, which will be issued next week.

On Thursday, government data revealed that sales growth for retailers. Wall Mart says that her consumers have become cautious and selective.

The customs tariffs threaten China and other countries that are low -priced at the heart of the success of Wall Mart.

The complete impact of the costs of customs tariffs was delayed, as companies tried to overcome the watch by making foreign goods before Trump’s tariff became into effect. Retail and importers also stopped shipments of shoes, clothes, games and other elements due to the new definitions, but many of them resume imports from China in the narrow window that opened during the temporary “truce” this week, hoping to avoid sporadic shelves this fall.

However, retailers, who are already working on thin margins, say they have no choice but to raise prices to compensate for the high costs of definitions. It is also preparing to increase the shipping costs that are fueled by an increase in companies to get their goods on ships to the United States

Rene told the Associated Press that the retail seller had not stopped shipments from China as a result of definitions like others because she did not want to harm its suppliers and wanted to keep the flow of goods. It was built in hedges against some of the tariff threats. Two -thirds of Walmart goods are obtained in the United States, where grocery stores now represent approximately 60 % of the American Walmart works.

However, Wall Mart is not fortified.

CEO Duj McMelon told analysts on Thursday that Wall Mart imports general goods from dozens of countries. But China, in particular, is a large part of size in some groups such as electronics and games.

The company’s executive officials said that the customs tariff for countries such as Costa Rica, Peru and Colombia raises costs on groceries such as avocado, coffee and roses, in addition to bananas. In some cases, Walmart accommodates the costs on general goods within departments or category and not just transferring the cost of the tariff that is attributed to each element separately, Executive officials said.

Walmart also requests suppliers to exchange input materials for ingredients if possible, for example, using glass fibers instead of aluminum, which Trump struck with tariffs in early March.

“We are highly dependent on imports for these types of products,” Reeny told Associated Press.

He said that there are some goods that Walmart cannot simply turn production or production easily in the United States.

McMillon, who was among a selection of executives of the adult retailers who met Trump at the White House at the end of last month to discuss the customs tariff, was analyzed on Thursday that he hoped the customs tariff will be reduced.

Walmart received $ 4.45 billion, or 56 cents per share, in the quarter ending April 30, a decrease from $ 5.10 billion, or 63 cents per share, in the same period last year.

The amended profits per share were 61 cents, expectations of 58 cents of industry analysts, according to FactSet.

Revenue increased by 2.5 % to 165.61 billion dollars, less than analysts.

Walmart sales in the US -comparable United States – those from existing physical stores and online channels – increased by 4.5 % in the second quarter, although this slowed down from 4.6 % stumbling blocks in the previous quarter, an increase of 5.3 % in the third quarter of 2024.

The work was fueled by health and wellness elements as well as grocery stores. The company said that sales were weakened at home and good sports, which were compensated through strong sales of games, cars and children’s clothes.

World e -commerce sales increased 22 %.

Wall Mart said it expected sales growth by 3.5 % to 4.5 % in the second quarter.

However, like many other American companies, no profit look at a quarter due to the chaotic environment, while constantly changing US tariff policies. The company maintained the instructions of the entire year issued in February.

This story was originally shown on Fortune.com

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2025-05-16 09:32:00