Walmart Says It Will Raise Prices Due To Tariff Costs

Tariffs on China and other countries are threatening the low-price model at the core of Walmart’s success.

NEW YORK (AP) — Walmart, which became the nation’s largest retailer by making low prices a priority, has found itself in a place it’s rarely been: Warning customers that prices will rise for goods ranging from bananas to car seats.

Executives at the $750 billion company told industry analysts Thursday that they are doing everything in their power to absorb the higher costs from tariffs ordered by President Donald Trump.

Given the magnitude of the duties, however, the highest since the 1930s, higher prices are unavoidable and they will hurt Walmart customers already buffeted by inflation over the past three years.

Trump’s threatened 145% import taxes on Chinese goods were reduced to 30% in a deal announced Monday, with some of the higher tariffs on pause for 90 days.

Those higher prices began to appear on Walmart shelves in late April and accelerated this month, Walmart executives said Thursday. However, a larger sting will be felt in June and July when the back-to-school shopping season goes into high gear.