Outlook Business Desk
Walmart is preparing to hike prices as US tariffs on imports from countries like Costa Rica, Colombia and Peru begin to take effect. These duties are making basic goods costlier for retailers and consumers.
The company said customers will see price increases by the end of May and in June. This comes as the cost burden from tariffs begins to show across multiple categories, especially food and essentials as reported by CNBC.
“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,” said Walmart CEO Doug McMillon .
Walmart CFO John David Rainey ,called the surge in costs “unprecedented,” saying the speed and scale of price hikes are unlike anything the company has seen before, especially for a retailer of its size.
Shoppers could pay more for avocados, bananas, roses and coffee. These goods are mostly imported and now fall under new tariffs, forcing retailers to pass on costs to buyers.
Walmart CFO, said about 30% of its total imports are being impacted by the tariffs. While two-thirds of goods sold are domestic, this imported share affects high-demand categories.
About one-third of Walmart’s US products come from abroad. While two-thirds are domestic, the affected imported portion includes widely consumed items that could soon become pricier.
McMillion said, to soften the tariff blow, Walmart is changing materials, shifting sourcing countries and trimming orders—moves aimed at avoiding steep price hikes and keeping shelves stocked without hitting customers too hard.