Walmart, the world’s largest retailer, has issued a warning that its prices could rise if President-elect Donald Trump goes ahead with his tariff plans. Trump is pushing for new tariffs of 10% to 60% on imported goods, claiming they will boost U.S. manufacturing. However, experts say these tariffs will hurt consumers and raise costs for basic items.
John David Rainey, Walmart’s Chief Financial Officer, explained the challenge during an interview. “We never want to raise prices,” he said. “Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.” This statement is alarming for millions of Walmart shoppers who rely on the store for affordable groceries, clothes, and household items.
Trump has called tariffs “the greatest thing ever invented” and believes they will create jobs by encouraging companies to produce more goods in America. But many experts disagree. Tariffs act like taxes on imports. When companies pay higher prices for goods, they pass those costs to consumers. This means you’ll likely pay more for everyday items like furniture, clothes, and even groceries.
The National Retail Federation, a group that represents stores like Walmart, warned that Trump’s tariffs would cost U.S. consumers billions. For example, they estimated people would pay $10.9 billion more for household appliances, $8.5 billion more for furniture, and $13.9 billion more for clothing.
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Other big companies are sounding the alarm too. AutoZone CEO Philip Daniele said on a recent earnings call, “If we get tariffs, we will pass those tariff costs back to the consumer.” Lowe’s CFO Brandon Sink also warned that tariffs would add to their costs, noting that 40% of the goods they sell come from outside the U.S.
Raising prices is not what Walmart wants to do. Most of Walmart’s products are made, grown, or assembled in the U.S., which helps shield them from the worst effects of tariffs. But Walmart still imports some goods from other countries. Even small cost increases could ripple through their supply chain, making prices go up for customers.
Rainey acknowledged this challenge: “Tariffs are inflationary for customers, so we want to work with suppliers and with our own private brand assortment to try to bring down prices.” In other words, Walmart is trying to find ways to keep costs low. But even with these efforts, the impact of tariffs could still hit shoppers’ wallets.
Trump used similar tariff policies during his first term in office. Those policies led to higher prices on steel, aluminum, and other materials, which hurt businesses and raised costs for products made with those materials. Now, with Trump set to return to the White House, it seems he hasn’t learned from past mistakes.
Economists say tariffs are the wrong solution. Instead of helping everyday Americans, they increase inflation and make life more expensive. Families who shop at Walmart and other stores need relief, not higher costs.
Who really benefits from these tariffs? It’s not the average American struggling to make ends meet. Walmart’s warning shows how out of touch Trump’s policies are with the real needs of the people. Everyday people deserve policies that make life easier, not harder.
Featured image via Political Tribune Gallery
