US giant Walmart has said it will have to raise prices from later this month as the high cost of tariffs takes effect.
Shoppers in the US will see the costs of items increase throughout the end of May and June, Walmart’s chief financial officer David Rainey told CNBC.
The US and China reached a trade deal earlier this week, resulting in countries reducing the tariffs they put on each other, but many retailers are worried about the impact of tariffs.
Rainey did not divulge Walmart’s second quarter profit guidance due to President Trump’s tariffs, but expects annual net sales to rise between 3.5% and 4.5% and forecasts 3.46% of overall growth.
He said: “With a longer view into the full year, we believe we can navigate well and achieve our full year guidance.”
Walmart chief executive Doug McMillon added: “We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
No comments yet