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Walmart, the largest retailer in the world and a key indicator of consumer behavior in the United States, has raised alarms by announcing that it will begin to raise prices in response to the tariffs implemented by President Donald Trump.
The measure, which could be implemented “towards the end of this month, and certainly much more in June”, according to its Chief Financial Officer John David Rainey, will affect essential products and reflects the direct impact of U.S. trade policy on consumers' wallets.
Tariffs and trade tension: The trigger
Since early April, Trump has reactivated a global tariff offensive, imposing a 10% tax on most imports and even higher tariffs on products from China, which can reach up to 104%.
This measure has put the entire retail industry in a tough spot, especially for companies that rely on international supply chains like Walmart.
Tariffs -taxes on imported products- are implemented with the goal of protecting domestic production, but in many cases, they lead to inflationary effects.
"We will do everything possible to keep our prices as low as possible, but given the magnitude of the tariffs, even with the reduced levels announced this week, we cannot absorb all the pressure due to the reality of tight retail margins," said Walmart CEO Doug McMillon.
Price increases: imminent and necessary
The warning translates into a concrete fact: consumers will notice higher prices on everyday items within a matter of weeks.
“I am concerned that consumers will begin to see higher prices. They will likely start noticing them by the end of this month and then, undoubtedly, much more in June”, Rainey stated to CNBC.
Walmart is not the only affected player. Supplier companies such as Adidas, Mattel, and Procter & Gamble have also raised or announced increases in their prices.
"If tariffs are eliminated, of course there will be no price increases... but if they are maintained or even increased, they will cause a rise in prices in the market as a whole," stated Adidas CEO Bjorn Gulden emphatically.
An environment of uncertainty
Although Walmart reported a 4.5% growth in its comparable sales in the U.S. and a 21% increase in its e-commerce, the company refrained from providing profit forecasts for the second quarter due to high volatility.
"The lack of clarity in the current dynamic operating environment makes it extremely difficult to forecast the very short-term future," the company explained in a statement.
McMillon, who has maintained a cordial relationship with Trump, warned in a meeting at the White House that "the trade war with China had already begun to disrupt the supply chain and would only escalate in the coming months," as revealed by CNN.
Political pressure on companies
Walmart's decision could generate political tensions.
The White House has already responded harshly to companies announcing price increases due to tariffs.
Amazon, for example, was publicly criticized for considering displaying the additional cost on its products.
Trump also threatened Mattel with a 100% tariff on its toys if it continued its pricing policy.
In this context, Walmart has chosen a strategic communication approach, acknowledging that it is not "immune" to the impact of tariffs while reaffirming its commitment to consumers.
Competitive advantage in the midst of the storm
Despite the uncertain landscape, Walmart is better positioned than many of its competitors.
Only 15% of its products come from China, while approximately 60% of its inventory consists of food, mostly of domestic origin, which reduces its direct exposure.
Analysts from Bank of America and Evercore ISI agree that Walmart has structural advantages such as its operational scale, bargaining power with suppliers, and technological capabilities to navigate current challenges.
"Walmart is leveraging its scale advantage, technological capabilities, and supply chain expertise to lead in a time of greater uncertainty," explained Greg Melich from Evercore ISI.
Walmart+ and the digital push
Another key pillar in Walmart's resilience is its membership service, Walmart+, which has gained popularity with its monthly subscription of $12.97.
According to data from CNBC, its members accounted for nearly 50% of the company's digital spending in the U.S. last year, spending almost three times more than non-subscribers.
The expansion of this service has allowed the company not only to retain customers but also to collect valuable data and develop new sources of advertising revenue.
Additionally, Walmart announced the celebration of Walmart+ Week, which began on April 28, featuring exclusive promotions such as discounts on gasoline and free sandwiches at Burger King, in an effort to retain and attract new subscribers.
E-commerce on the rise
With 11 consecutive quarters of double-digit digital growth in the U.S., including 20% in just the last quarter, Walmart is solidifying its omnichannel strategy and strengthening its position against rivals like Amazon.
This trend confirms that the American consumer seeks convenience, low prices, and hybrid options between physical stores and digital delivery.
Conclusion: Stability under pressure
Walmart is facing a highly volatile environment characterized by aggressive tariff policies, inflation, and changes in consumer habits. However, the company demonstrates adaptability, leadership, and a strategy focused on protecting its value proposition.
"We have learned to manage turbulent periods... And although we don't know everything that will happen, we do know what our priorities and purpose are, and we will focus on keeping prices as low as possible," reaffirmed Doug McMillon.
The warning is clear: if prices rise at Walmart, they will likely rise across the entire United States.
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