Walmart CEO issues 5-word message of hope to customers after warning of new price hikes
A TOP Walmart executive has shared a five-word message to the company's millions of shoppers, offering a glimmer of hope on the future of prices.
The CEO's message, however, has been cautiously paired with a warning of impending cost hikes.
As the retail industry faces escalating pressures under the Trump administration's tariff war with countries across the globe, businesses and consumers alike fear skyrocketing costs.
In spite of its stance as the largest retailer in the world - equipped with a solid supply chain and backed by over $600 billion in annual revenue - Walmart is subject to the same struggles as other companies.
As a direct result of the trade war, the retail giant has raised prices starting this month and plans to continue with the increases through June and into the summer.
"We're positioned to manage the cost pressure from tariffs as well as or better than anyone, but even at reduced levels, the higher tariffs will result in higher prices," Walmart CEO Doug McMillon admitted at an earnings call on Thursday.
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However, the top boss assured its loyal customers that the company would do its best to absorb the costs where it could and avoid unnecessary price increases - especially in the food category.
McMillon offered shoppers a five-word message of hope in the midst of a turbulent economy, stating that Walmart aimed to keep the price of food and consumables "as low as we can."
"Food prices in the US have gone up in recent years, and our customers have been feeling that all along," said the executive.
He emphasized that the company would not let tariff-related cost pressure on general merchandise spike food prices, but that the trade war's direct impact on the cost of food imports was a different story.
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Tariffs on countries including Costa Rica, Peru, and Colombia have raised the costs of imported grocery staples such as coffee, avocados, and bananas, McMillon admitted.
He said that, while Walmart could not bear the entirety of the financial burden from tariffs due to the reality of narrow retail margins, the company would take strides to protect its shoppers from rising costs.
"We'll do our best to control what we can control in order to keep food prices as low as possible," promised McMillon.
SHOPPING STRIFE
The Walmart executive's vague stance on the implications of the trade war on future prices stems from the dire extent of the economic uncertainty that it has caused.
Although President Trump has lowered tariffs on foreign imports since the start of the trade war in February, fear remains high.
While Walmart is confident in its ability to emerge from the tariff crisis unscathed, the company has admitted that it is not fully immune in the short term - and consumers will soon see the effects.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump's new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
Executives previously spoke out on the impending impact of the trade war on costs, sparking fears over higher shelf prices.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” company CFO John David Rainey previously told The Wall Street Journal.
“It’s a dynamic and fluid environment."
US companies importing goods from China, such as Walmart, are the ones who directly pay tariffs.
These costs are often then passed on to American consumers in the form of higher prices.
While Walmart aims to provide affordability and value to its customers, the vast extent of its spiking expenses is far more than the retailer can take on alone.
As a result, Walmart's everyday low prices could take a hit.
The average household could pay an extra $1,600 to $2,000 each year thanks to price increases caused by the tariffs, according to predictions from the Yale Budget Lab.
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The tariff battle could raise prices in a variety of categories, including toys - a beloved toymaker has addressed Christmas shortage fears after shopper outrage over Barbie prices.
In addition to price increases, shoppers may see empty shelves - retail expert revealed the exact date to expect the shortages.
Why has Trump hit China, Canada, and Mexico with tariffs?
DONALD Trump has imposed 10% tariffs on Chinese imports and Beijing has retaliated. Trump also hit Canada and Mexico with 25% tariffs, but walked back many of them on March 6
China:
- Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
- China has slammed Trump for the claim and described fentanyl as America's problem.
- The country also said the tariffs are a "serious violation" of the World Trade Organization rules.
- China is filing a lawsuit with the WTO against the US for "wrongful practice."
- China serves as a major supplier of auto parts to the US.
- Phones, computers, and other key electronic devices were also in the top imports from China last year, according to Commerce Department data.
- In 2023, the US imported around $427 billion worth of products from China, according to the US Census Bureau.
- Data reveals that 78% of all smartphones imported from the US came from China.
- Trump's tariff threat has sparked fears of price rises for fashion items and toys.
- Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two superpowers.
Canada:
- Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States.
- He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil.
- A total of 59 pounds of fentanyl was seized at the northern border by US agents between 2022 and 2024, according to the Canadian government.
- Meanwhile, almost 62,000 pounds of the drug was seized at the southern border.
- The 25% tariffs Trump proposed on Canadian goods were destined to come into force on March 4.
- Canada responded with a 25% tariff on $155 billion of American imports.
- On March 6, Trump warned the 25% tariff on steel and aluminium would come into force on March 12.
- Ontario Premier Doug Ford responded with a 25% surcharge on electricity exported to Michigan, Minnesota, and New York.
- Trump then threatened to double the 25% tariff to 50%.
- The Ontario premier warned that he "will not hesitate to increase" the levies or completely shut off power to the three US northeastern states.
- Both sides then agreed to talk and toned down their threat.
- Ford then paused the electricity surcharge.
Mexico:
- Mexico has managed to twice postpone Trump's tariffs on Mexican goods.
- On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China.
- But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump's concerns on border security and drug trafficking.
- Trump then threatened that the 25% tariffs would come into force on March 4.
- Two days later, Trump announced a delay on most goods covered under the US-Mexico-Canada Agreement.
- Trump credited Mexican President Claudia Sheinbaum's progress on border security and drug smuggling as a reason for the pause on the levies.
- The Mexican Navy has seized thousands of kilograms of drugs from criminal gangs.
- Sheinbaum promised to deploy 10,000 extra troops to the Mexico-US border.
- Still, Trump has maintained that on April 2, the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.