“Not Going To Be Immune”: Walmart Warns of Potential Price Hikes as Trump’s Tariffs Loom

Retail Giant Braces for Impact as New Trade Duties Threaten Supply Chains

Walmart has issued a stark warning that its business could be significantly affected by new tariffs that former President Donald Trump is seeking to impose, particularly if duties targeting Canada and Mexico—two of America’s largest trading partners—are implemented.

The warning came after the retail giant released its quarterly earnings report, which showed slowing profit growth. The announcement rattled investors, leading to a 6% drop in Walmart’s stock price during a broader market decline.

In an interview with CNBC, Walmart’s Chief Financial Officer John David Rainey acknowledged that while the company sources two-thirds of its products from the U.S., it is “not going to be completely immune” from trade duties and their inflationary effects.

“We’ve lived in a tariff environment for the last seven or eight years, and we’ll do what we know how to do,” Rainey said. “We’ll work with suppliers. We’ll lean into our private brand. We’ll shift supply where necessary to try to take advantage of lower costs that we can then pass on to consumers.”

However, he admitted that Walmart could not fully shield consumers from price hikes, emphasizing that tariffs typically lead to higher costs across the supply chain.

“There will likely be cases where prices for consumers will increase as a result of tariffs,” Rainey added, noting that such policies are “inflationary” for shoppers.

Trump’s Tariffs Could Reshape U.S. Trade and Retail Costs

Trump has proposed an expansive list of tariffs, which, if fully implemented, could significantly disrupt global supply chains and raise costs for U.S. businesses and consumers. These proposed tariffs include:

• A 10% across-the-board tariff on all imported goods
• Higher duties on steel, aluminum, automobiles, drugs, semiconductors, and lumber
• New trade penalties targeting China, Canada, and Mexico

So far, only a supplemental 10% duty on Chinese goods has gone into effect, but Trump has repeatedly threatened to expand the list of affected goods and countries depending on ongoing trade negotiations.

While Trump has framed the tariffs as a strategy to protect American jobs and industries, economists warn that the real impact could be inflation, slower economic growth, and increased costs for businesses and consumers.

Historically, tariffs have functioned as a hidden tax, raising the price of imported goods. Since many U.S. manufacturers rely on imported materials, businesses often pass the added costs down to consumers.

A recent report from the Peterson Institute for International Economics estimated that Trump’s proposed 10% universal tariff would cost the average U.S. household an additional $1,500 per year due to price increases across various goods, including electronics, vehicles, and food.

The concern is so widespread that the Federal Reserve has now factored tariff risks into its economic outlook.

This week, the Fed acknowledged that rising tariffs were part of its reasoning for keeping interest rates elevated, as trade policies could exacerbate inflation.

The Fed noted that business contacts in a number of Districts had indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs.

In its “upside risks to the inflation outlook”, the central bank specifically cited “the possible effects of potential changes in trade and immigration policy.”

U.S. Companies Brace for Disruptions

Beyond Walmart, major U.S. companies are scrambling to assess how Trump’s tariffs could impact their operations.

According to CNBC data, the word “tariffs” has been mentioned in over 190 earnings calls held by S&P 500 companies in 2025, a frequency not seen in nearly five years.

While some businesses—particularly those in manufacturing and retail—expect direct cost increases, others are worried about the broader economic slowdown that could result from higher consumer prices.

“We’ve game-planned out several scenarios and steps we could take depending on what actually goes into effect,” said Cisco CFO R. Scott Herren, whose company depends on imported electronic components.

Will Consumers Pay the Price?

For Walmart and other major retailers, the challenge now is finding ways to minimize the cost burden on consumers.

Some of the strategies being explored include:

• Sourcing goods from lower-tariff countries
• Expanding private-label brands to replace expensive imports
• Negotiating price adjustments with suppliers

However, many industry analysts remain skeptical that these measures will be enough to completely offset the cost increases.

As one of the largest retailers in the world, Walmart’s response is expected to serve as a key indicator of whether tariff-induced inflation will trickle down to everyday shoppers—and just how much of the burden they will be forced to bear.