Walmart on Thursday warned that even softer tariffs on China could soon force the company to raise prices on certain items.
The world’s largest retailer said President Trump’s wide-ranging levies on U.S. trade partners are impeding its ability to keep prices low.
“We can control what we can control,” Walmart CEO Doug McMillon said during an earnings call on Thursday. “Even at the reduced levels, the higher tariffs will result in higher prices,” he added.
The price hikes will go into effect later this month.
Still, the Walmart executive emphasized that the retailer will do what it can to avoid passing the import taxes onto customers.
“We’ll do our best on what we can control in order to keep food prices as low as possible,” McMillon said. “In some cases we are holding retail prices where they are despite the tariffs cost pressures.” The CEO went on to reassure investors that despite tariff headwinds ahead, the company’s profit will continue to grow faster than sales.
Grocery prices dropped slightly last month, declining 0.1% from March, according to government data. However, many household costs remain elevated, as the CBS News price tracker shows.
Walmart also pulled its quarterly profit outlook amid global economic uncertainty, as Mr. Trump vows to strike favorable trade deals with countries that are subject to steep levies on imports.
contributed to this report.
