Trump tariffs trigger price hikes in US market
According to the International Economics section of Webangah News Agency, citing Tasnim News Agency and The Hill, the owner of Walmart stores in the U.S. announced on Thursday that due to rising costs resulting from Donald Trump’s trade war, product prices in these stores will rise.
The price hike at Walmart indicates that despite the Trump governance’s efforts to negotiate with countries, tariffs have severely impacted American consumers and the economy.
The retail giant stated it plans to raise prices this month and early this summer, passing some of these costs onto consumers as goods affected by tariffs have already reached store shelves.
John david Rainey, Walmart’s CFO, told The Wall Street journal: “The magnitude and speed at which these tariffs are being imposed on us are somewhat unprecedented in history.”
Walmart also reported a decline in its first-quarter profits, dropping from $5.10 billion or 63 cents per share to $4.45 billion or 56 cents per share.
The company refrained from providing profit forecasts due to uncertainty surrounding Trump’s tariff policies, aligning with several other firms adopting a similar approach.
Doug mcmillon, Walmart’s CEO, stated: “We will do everything we can to keep prices as low as possible. However, given the intensity of tariffs—even at reduced levels announced this week—we cannot absorb all pressures because profit margins in retail are very slim.”
The report notes that Walmart sells various low-cost household goods and clothing items highly susceptible to price increases under Trump’s tariffs.
The Trump administration implemented a major shift this week in its trade policy with China—one of America’s largest trading partners—whose factories produce a wide range of goods found on U.S. store shelves.
tariffs on Chinese imports were reduced from 145% to 30%, while Beijing also cut its tariffs on U.S. goods from 125% down sharply by just over one percentage point (to around ~10%).
