Walmart says new Trump tariffs could raise prices | Global News Avenue

WalmartChief Financial Officer John David Rainey said retailers may have to raise prices on some items if President-elect Donald Trump’s proposed tariffs go into effect.

“We never want to raise prices,” he told CNBC on Tuesday. “Our model is low prices every day. But for consumers, prices may go up.”

Rainey added that it was too early to say which products might be more expensive due to tariffs.

Walmart CFO weighs in on potential policy changes As America’s largest retailer Beat Wall Street’s earnings and sales forecasts and raised its full-year forecast. Lowe’s also addressed the risks posed by the proposed tariffs: Home improvement company reports earnings Tuesday.

Walmart and Lowe’s reviews are Latest warning U.S. retail leaders on the possible impact of tariffs. During his presidential campaign, Trump stated that he would impose tariffs of 10% to 20% on all imported goods, including tariffs of up to 60% to 100% on goods from China.

During the earnings call, Lowe’s Chief Financial Officer Brandon Sink said that about 40% of the company’s cost of sales comes from Goods from outside the United States, including direct imports and goods from domestic brands. He said the tariffs “will certainly increase the cost of the product,” but added that “the timing and details are still uncertain at this time.”

CEO Marvin Ellison told CNBC that Lowe’s, like other consumer-facing brands and retailers, is concerned about the risk of rising costs. He said the company is already having conversations with suppliers about “what-ifs for tariffs” while waiting to see what Trump’s policy changes will ultimately look like.

“We will not wait to take action,” he said. “We have plans in place. We have scenarios in place and we are working to understand the impact.”

The two companies are not the only major retail stakeholders to raise concerns.

In a statement earlier this month, National Retail Federation CEO Matthew Shea described sweeping tariffs as a “tax on American families.” He said this “will drive inflation and price increases and lead to job losses”.

The prospect of higher prices comes as U.S. inflation has slowed after years of straining consumer wallets.

Other retailers and brands have also spoken out about the potential downsides of tariffs. Tarang Amin, CEO of Elf Beauty In an interview with CNBC earlier this month, he said If higher tariffs go into effect, the company may be forced to raise prices. footwear manufacturer Steve Madden talk Reduce imported goods As much as 45% of products will come from China next year to avoid financial impact.

Most items sold at Walmart No tariff risk. Rainey said about two-thirds of the items sold at Walmart are made, grown or assembled in the United States

He said Walmart, like other companies, is trying to import products from different parts of the world rather than relying heavily on China or any one country. Rainey added that tariffs imposed during Trump’s first administration had caused the company to make adjustments.

“We’ve been living in a tariff environment for seven years, so we’re very familiar with it,” he said. “However, tariffs are inflationary for consumers, so we want to work with suppliers and our own private label brands to try to lower prices.”

—CNBC’s Gabrielle Fonrouge contributed to this report.