Walmart warns: Price rising threatens by Trump's customs policy!

Walmart warns: Price rising threatens by Trump's customs policy!

Vienna, AT - Walmart, the largest retailer in the world, is under considerable pressure due to the customs policy of the Trump administration. CEO Doug McMillon recently warned that the high tariffs on goods, especially from China, could lead to price increases. As a result of this situation, Walmart plans to increase prices for certain articles in order to compensate for the increased costs. Finance Minister Scott Bessent confirmed that Walmart will take over some of the customs loads, but without pressure on the company. President Trump asked Walmart not to use the tariffs as a justification for price increases, which also complicated the situation.

Walmart has already announced that price increases can be expected this month and early summer. According to the CFO John David Rainey, the speed and the extent of these price increases are unprecedented. Despite the efforts to keep prices low, McMillon emphasizes that Walmart cannot absorb all costs of the tariffs. The retailer has a wide range of products, including electronics, toys and foods that are affected by customs policy. Consumers could soon be confronted with higher prices because the company plans to implement some price increases this month.

economic effects of tariffs

Analysts and economists have pointed out that the increased tariffs could significantly increase prices for US consumers. Walmart recorded sales of around $ 648 billion last year, but profit fell to $ 4.45 billion in the first quarter of the year. The uncertainty regarding customs policies and a possible collapse of trade leaves a profit forecast for the future in the dark. Despite these challenges, Walmart remains strong in the USA, with a sales growth of 4.5 % in existing shops and an increased attraction for wealthier customers.

The latest customs cuts by the Trump administration, which reduced tariffs to Chinese imports from 145 % to 30 %, remain in the air. There is uncertainty about future development in negotiations with trading partners such as the EU, Vietnam and South Korea. However, Walmart has the opportunity to use its size and relationships with its suppliers to manage the costs and to cope with the competition with Amazon.

Future view

The price movements of Walmart are in a sensitive political context, since price increases are considered politically inappropriate and the relationship with the Trump administration could put a strain on. Consumers must adapt to the first price increases that will soon become noticeable, while Walmart continues to pursue the goal of keeping their prices low despite difficult conditions. For the rest of the year, the retailer expects sales growth of around 3.5 % to 4.5 %.

As reacted to the tariffs and inflation, could be crucial for Walmart and its market position. The company has emphasized that Trade uncertainty could make future planning difficult and could disrupt the supply chains. Despite the current challenges, Walmart remains an important retail player, although it repeatedly emphasizes that it strives to keep prices as low as possible for its customers.

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