Walmart has warned that it may have to raise prices if President-elect Donald Trump moves forward with his tariffs plan.
“We never want to raise prices — our model is everyday low prices — but there probably will be cases where prices will go up for consumers,” Walmart CFO John David Rainey told CNBC on Tuesday.
Walmart CFO John David Rainey tells me “any incremental tariffs will be inflationary” for consumers. however 2/3rds of Walmart items are made, grown or assembled in the US
— Sara Eisen (@SaraEisen) November 19, 2024
The good news is that most of Walmart’s products aren’t at risk, since two-thirds of them are made, grown, or assembled here in the United States. Plus, Walmart already has experience with tariffs courtesy of the levies that Trump imposed during his first term in office.
“We’ve been living under a tariff environment for seven years, so we’re pretty familiar with that,” Rainey said. “Tariffs, though, are inflationary for customers, so we want to work with suppliers and with our own private brand assortment to try to bring down prices.”
Some critics responded to all this by wondering why Walmart doesn’t just produce all its products in the United States.
Look:
Can you ask why Amazon and Walmart don’t show country of origin on their apps? Knowing this info would help customers make choices that support American manufacturers.
— I like that song (@goh1968) November 20, 2024
Walmart sources most goods from China and Asia. I led and closed their major Better Homes and Gardens line. All sourced overseas. Walmart needs to redirect their sourcing to the USA #realDonaldTrump
— John Zieser (@johnszieser) November 20, 2024
Walmart has been playing the “Made in America” shell game for a while. You build 90% if a product overseas, do the final step in the US and call it American. It was always a lie, and they knew it. Now they have a product lineup that is mismatched.
— A Green (@aargreen) November 19, 2024
Lowe’s, a major hardware company, has issued a similar warning.
During an earnings call listened to by CNBC, Lowe’s CFO Brandon Sink reportedly said 40 percent of the company’s cost of goods sold originates outside the U.S., meaning tariffs “certainly would add product costs.”
In an interview with CNBC, CEO Marvin Ellison said outright that the company is worried about consumers facing higher prices.
“He said it’s already having conversations with suppliers about the ‘what ifs of tariffs,’ as it waits to see what Trump’s policy change will ultimately look like,” CNBC notes.
“We’re not waiting to act,” he asserted. “We’ve got plans in place. We’ve got scenarios in place, and we’re trying to understand the implications.”
Then there’s Autozone. The company’s CEO, Philip Daniele, said during an earnings call in September that his company will simply pass the cost of any tariffs “back to the consumer.”
Meanwhile, a study by the National Retail Federation published earlier this month found that Trump’s tariffs would have “a significant and detrimental impact on the costs of a wide range of consumer products sold in the United States.”
In a statement, NRF CEO Matthew Shay described the tariffs as “a tax on American families” and warned they “will drive inflation and price increases and will result in job losses.”
“Consumers would pay $13.9 billion to $24 billion more for apparel; $8.8 billion to $14.2 billion more for toys; $8.5 billion to $13.1 billion more for furniture; $6.4 billion to $10.9 billion more for household appliances; $6.4 billion to $10.7 billion more for footwear, and $2.2 billion to $3.9 billion more for travel goods,” according to NRF.
Trump’s proposed 10% to 20% tariffs on imports and 60% to 100% on imports from China would cost American consumers $78 billion in annual spending power, according to National Retail Federation CEO Matt Shay.
— unusual_whales (@unusual_whales) November 5, 2024
Responding to all this, critics made a few points. One, tariffs are meant to be temporary, not permanent. Two, the “experts” were dead wrong about the inflation crisis under the Biden-Harris administration.
See more below:
If they were permanently in place, yes. The idea is to use tariffs temporarily to get better trade deals for America and its long overdue.
— John Hawkins (@johnhawkinsrwn) November 5, 2024
The truth is, these tariffs are about leveling the playing field and putting America first—keeping our industries strong and our jobs here at home. Sure, there’s an adjustment cost, but it’s an investment in our own future, not China’s.
— MAG1775 (@Mar50cC5O) November 5, 2024
Trump’s proposed tariffs aim to protect American industries, create jobs, and reduce reliance on foreign manufacturing.
While there’s a cost, investing in American-made goods strengthens the economy long-term, supporting national resilience and growth.
— Siddharth P (@SPeesary) November 5, 2024
How many intelligence community members said the Hunter Biden laptop was Russian disinformation?
How many economists tried to claim that printing all this money wouldn’t cause inflation?
No thanks
— Matt (@amattattack) November 5, 2024
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