Walmart confirms price hikes as tariffs hit imports: Here's which items can affect your pocket this summer
Walmart declared during its quarterly earnings call on Thursday that it will be increasing prices at its locations as a result of the high import duties.
'Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure,' Stephanie Schiller Wissink, Walmart's senior vice president, told investors on the call.
Prices at Walmart stores across the country and online are expected to increase commencing from late May or early June, however it's yet uncertain how much of a price increase to anticipate.
While tariffs have increased the cost of everything from autos to baby supplies, Walmart has thus far remained relatively immune to the effects of the trade war because a large portion of its items are sourced from the US.
After the retail behemoth revealed that its products would become more costly, Trump tweeted on Saturday that Walmart should stop 'trying to blame tariffs.'
Taking to Truth Social, Trump wrote that 'Between Walmart and China they should, as is said 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I'll be watching, and so will your customers!'
Also Read: Walmart hit by four food recalls in two months: Which products are affected?
In a CNBC interview, Walmart's Chief Financial Officer John David Rainey said: 'There are certain items, certain categories of merchandise that we're dependent upon to import from other countries and the prices of those things are likely going to go up, and that's not good for consumers.'
Other retailers announced price increases as well. Birkenstock (BIRK.N), a German sandal manufacturer, disclosed intentions to hike prices worldwide on Thursday in order to fully mitigate the financial effect of the 10% U.S. duty on items made in the European Union.
Walmart's CEO Doug McMillon on Thursday noted that the retailer imports food commodities like coffee, avocados, bananas, and roses from nations like Colombia, Peru, and Costa Rica, making cost adjustments more difficult.
Moreover, consumers are most likely to see the effects while purchasing toys and electronics, which are primarily imported from China, according to the company.
'Well, maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally,' Trump said as he acknowledged the possible effects of tariffs on toys.
Price increases for products used in gaming should also be significant. Experts predict that Nintendo's Switch 2, which was originally priced at $450, may wind up costing about $600.
The cost of childcare supplies including formula, strollers, clothing, and car seats may also increase. About 90% of babies and children's equipment is made solely in China, according to industry experts, and this percentage isn't going to alter anytime soon.
Daniel Morgan, senior portfolio manager at investment firm Synovus, stated even an Apple iPhone 17 might cost over $1,000 instead of $799, as per CNN.
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