Walmart to Raise Prices on Some Items Due to Tariffs

Walmart has announced that it will increase prices on several products in the coming weeks due to rising tariffs on imported goods. The move is expected to affect common items like bananas, avocados, roses, and toys, according to the company.

Shoppers to See Changes by End of May

Chief Financial Officer John David Rainey said customers will begin noticing price hikes toward the end of May, with more increases likely in June. The company expects more price changes than usual during the second quarter, which started this month.

“This is a bit unprecedented,” Rainey said in an interview with CNBC. “We’re trying to manage this the best we can.”

Despite the changes, Walmart aims to keep its prices lower than competitors, even if that means absorbing some of the costs.

What’s Causing the Price Hikes?

The U.S. government recently imposed new tariffs on goods from dozens of countries, including China, Mexico, Vietnam, India, Costa Rica, and Peru. While there has been a temporary reduction on Chinese tariffs — now at 30% instead of 145% — many imported goods are still being taxed.

Walmart CEO Doug McMillon said the company imports many products from these countries, including fruits, coffee, electronics, and toys.

“Upward pressure on prices began in April and will continue through the year,” McMillon said.

Retailers Adjust Strategies

Retailers like Walmart are adjusting by:

• Cutting order sizes for products expected to rise in price

• Switching materials (e.g., aluminum to fiberglass)

• Sourcing from other countries when possible

Some brands sold by Walmart have already raised prices. For instance, Mattel plans price hikes on toys, and Microsoft has increased the price of Xbox consoles and controllers.

Shoppers Look for Value

Even with price increases, Walmart expects strong demand. In fact, Rainey said rising prices could push more customers to Walmart in search of better deals.

“Consumers look for value when prices go up,” he said, adding that Walmart might absorb short-term costs to win long-term loyalty.

The company is maintaining its full-year financial outlook, despite narrowly missing revenue expectations this past quarter.