If you’re a regular Walmart shopper, now might be the time to stock up. The retail giant has confirmed that price increases are on the horizon, and they could arrive faster than expected. Citing rising import tariffs as the driving force, Walmart is preparing to adjust prices on everything from fruits and vegetables to toys and electronics, signaling a potential ripple effect across U.S. shopping carts.
Tariffs Force Walmart to Rethink Prices Despite Revenue Growth
For the past month, the potential impact of President Trump’s 10 percent universal tariffs and the threat of reciprocal tariffs has fueled considerable speculation regarding their effect on American consumers. While the stock market has largely borne the initial brunt, and many shoppers may not yet have experienced price fluctuations, this could be set to change in the coming weeks.
As a major retailer with over 4,600 stores across the United States, Walmart sources a significant portion of its merchandise from countries including Canada, China, India, Mexico, and Vietnam. These nations now face tariffs of at least 10 percent, with even higher duties of 25 percent imposed on steel, aluminum, cars, and auto parts imports.
“All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact,” stated Doug McMillon, Walmart’s President and CEO.
During the company’s earnings call on May 15th, where Walmart, the parent company of Sam’s Club, presented its first-quarter results for 2025, the issue of tariffs took center stage. Despite a healthy 2.5 percent increase in revenue growth during the first quarter, the retailer explicitly identified tariffs, particularly those levied on goods from China, as a challenge that would need to be addressed in the second quarter.
“The immediate challenge is obviously navigating the impact of tariffs here in the U.S.,” McMillon explained during the earnings call. “We will do our best to keep our prices as low as possible…[but] we aren’t able to absorb all the pressure.”
Lower Tariffs Won’t Stop Walmart from Raising Prices
After President Trump hiked tariffs on most Chinese goods to a staggering 145%, last Monday brought a reprieve: a 90-day truce that lowered those tariffs to 30%. Still, Trump warned that the rates could become “substantially higher” if a trade deal with China isn’t reached.
Despite this short-term relief, Walmart executives say the pressure remains. During the company’s earnings call, Chief Financial Officer John David Rainey made it clear that the current tariffs are “still too high.”
For a brand known for delivering “everyday low prices,” the news may come as an unwelcome surprise to loyal customers. But Rainey emphasized to CNBC that the tariffs are “more than any supplier can absorb.”
Shoppers won’t have to wait long to feel the impact. According to Rainey, price increases could begin as early as the end of May, with “much more in June.”
Which Products Could See a Price Jump at Walmart?
Even though tariffs on goods from China appear to be significantly impacting Walmart’s pricing strategy, the anticipated price increases won’t be limited to Chinese imports alone; they are expected to affect a wide range of items throughout the store.
Food
“Food inflation is very much on our mind,” said McMillon. He elaborated that groceries such as bananas, avocados, and coffee are sourced from countries like Colombia, Costa Rica, and Peru. Additionally, the U.S. imports beets, cabbage, melons, and pineapples from Costa Rica, while sweet potatoes and citrus fruits come from Peru.
Though Walmart has not specified how much prices for fruits and vegetables might increase, McMillon emphasized the company’s efforts to manage what it can to keep food prices as affordable as possible. He suggested that “controlling the amount of fresh food waste” could be a crucial factor in this effort.
Between February and April, the average retail price of bananas in the U.S. rose by about two cents per pound, according to the Bureau of Labor Statistics.
Toys and Electronics
McMillon also highlighted China’s significant role in Walmart’s inventory, especially in categories like electronics and toys. Industry data from the Toy Association shows that approximately 80% of toys sold in the U.S. are made in China.
This reliance on Chinese production has led toy companies like Hasbro, the owner of Nerf and Play-doh, to consider cutting some items from their product lines, while Mattel, the creator of Barbie, has warned of potential price hikes due to the tariffs.
Evidence of rising toy prices has already surfaced, with a product pricing analysis from Telsey Advisory Groups showing a significant 42.9% increase in the price of a Barbie doll with a swimsuit at Target, a Walmart competitor, over a single week in mid-April, reaching $14.99.
Experts also anticipate substantial price increases in gaming products. The initially projected price for Nintendo’s Switch 2, around $450, could potentially rise to approximately $600. Furthermore, Daniel Morgan, a senior portfolio manager at Synovus, told CNN that even Apple’s iPhone 17 could cost more than $1,000, exceeding the anticipated $799 price tag.
Childcare Essentials
Childcare products, including items like strollers, clothes, car seats, and formula, are also likely to see price hikes. Industry experts estimate that about 90% of children’s and baby gear products are exclusively manufactured in China, a manufacturing landscape that is not expected to change in the near future.
Trump Fires Back at Walmart Over Price Increases Linked to Tariffs
President Donald Trump responded sharply on Saturday to Walmart’s announcement that it would raise prices, urging the retailer to stop “trying to blame tariffs.” Posting on Truth Social, Trump stated, “Between Walmart and China they should, as is said ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!”
Trump’s remarks echoed those of Commerce Secretary Howard Lutnick, who on Sunday told CNN’s State of the Union that “businesses and the countries primarily eat the tariff.” However, former Treasury Secretary Larry Summers dismissed such ideas as “ludicrous.”
Sources: CNN, Allrecipes