The takeaway from the earnings call today comes from these remarks by Doug McMillon. He warned that Walmart is planning to raise prices on some items as Trump’s tariffs are weighing on the firm’s costing. And that these price hikes will begin later this month, despite the recent temporary reprieve between the US and China.
“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.”
If even Walmart has to be one to raise prices, you can surely expect smaller firms to also do so. That especially as it is going to be a messy logistical summer in sorting out supply chains. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
We’ll see how this all plays out in the months ahead
