Walmart Warns Customers’ Shopping Bill Could Soar Under Trump’s Tariff Plan
In a stark warning that could affect millions of American shoppers, Walmart executives revealed that consumer prices may rise significantly if President-elect Donald Trump’s proposed tariff plan takes effect.
The execs warned that tariffs could potentially disrupt the retail giant’s long standing “everyday low prices” strategy, Daily Mail reported.
During Tuesday’s earnings call, where Walmart reported impressive 5.5 percent revenue growth and a 27 percent surge in global e-commerce sales, CFO John David Rainey addressed the looming challenge.
“We never want to raise prices,” Rainey stated.
“Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”
The retail behemoth, which sources approximately two-thirds of its products domestically through U.S. manufacturing, growing or assembly, faces uncertainty over which specific items might see price increases.
Experts, however, told ABC News that electronics, clothing, and toys—predominantly imported goods—would likely bear the brunt of higher costs.
Trump’s proposed tariff plan represents a dramatic escalation from previous trade policies, Daily Mail highlighted.
The president-elect is suggesting a 60 percent tariff on all Chinese goods and a sweeping 10 percent tariff on all $3 trillion worth of U.S. imports.
This marks a significant departure from both his first term and President Biden’s approach to trade policy.
A May report from the Peterson Institute for International Economics–outlined by Daily Mail– noted that these new tariffs could hit American families hard, potentially costing middle-class households at least $1,700 annually.
The total impact on consumers could reach $500 billion yearly–approximately 1.8 percent of GDP–quintupling the cost of the 2018 U.S.-China trade war, per CNN.
Retail expert Neil Saunders of GlobalData told the Daily Mail that contrary to certain claims, tariffs are paid by importing companies, not foreign countries.
“This means the cost of buying products from overseas, whether directly or as an input for manufacturing, would rise sharply,” he explained.
The outlet further noted that the timing of these potential tariffs coincides with significant shifts in Federal Reserve policy.
After maintaining high interest rates to combat inflation, the Fed has recently implemented two rate cuts, bringing rates to between 4.5 and 4.75 percent.
Economist Larry Summers warns that Trump’s tariff proposal could reignite inflation, potentially forcing a policy reversal.
Walmart’s strategy has involved diversifying its import sources over the past seven years of various tariff environments.
“We’ve been living under a tariff environment for seven years, so we’re pretty familiar with that,” Rainey noted, while emphasizing their commitment to working with suppliers to minimize consumer impact.
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