Bentonville, Arkansas – For anyone pushing a cart through Walmart’s aisles, the news hit like a gut punch: prices on everyday items like bananas, toys, and electronics are about to creep up. The world’s largest retailer announced Thursday that President Donald Trump’s tariffs, even after a recent reduction, are forcing them to raise prices starting as early as late May, with more increases expected in June. For shoppers already stretching their budgets, this means tougher choices at the checkout line, especially for families relying on Walmart’s promise of “everyday low prices.”
Walmart’s CEO Doug McMillon and CFO John David Rainey didn’t mince words during the company’s earnings call. “We’re wired to keep prices low, but the magnitude of these tariffs is more than any retailer can absorb,” Rainey told CNBC. The U.S.-China trade truce, announced Monday, slashed tariffs on Chinese imports from 145% to 30% for 90 days, while China cut its levies on U.S. goods from 125% to 10%. But Walmart says the 30% duty on Chinese electronics and toys, plus a 10% tariff on imports from countries like Costa Rica and Peru, still stings. “Bananas, avocados, coffee, roses—these are things we can’t just grow here,” McMillon said, explaining why food prices are under pressure too.
What does this mean for you? If you’re stocking up on groceries, expect to pay more for imported produce like bananas or avocados. That $100 car seat from China could jump by as much as $20, and toys or gadgets might see similar bumps. Walmart’s trying to soften the blow—about 60% of its U.S. products are groceries, mostly sourced domestically, which shields some items from tariffs. They’re also getting creative, swapping aluminum for fiberglass in some products to dodge tariffed materials and spreading cost increases across departments to avoid shocking price tags on single items. But with retail margins razor-thin, there’s only so much they can do.
Shoppers are already feeling the squeeze. At a Walmart in South Gate, California, a customer named Leora loaded her cart with toilet paper and food, saying, “I haven’t seen prices go up yet, but I’m worried. That’s why I bought so much today.” Posts on social media reflect the anxiety, with one user in Texas sharing photos of sparse frozen food aisles, blaming tariffs for “devastating” price hikes. Retail sales barely budged in April, up just 0.1% from March, as consumers tightened their belts after a tariff-driven buying spree earlier this year.
Walmart’s not alone in this mess. Retailers like Target, Home Depot, and even luxury brands like Hermès are signaling price hikes, with car seats, toys, and apparel hit hardest. The Federal Reserve noted tariffs have already pushed prices up 0.3% this year, and consumer confidence is at a 13-year low, per the Conference Board. Yet, Walmart’s scale gives it an edge—its size lets it strong-arm suppliers to cut costs, and its focus on groceries means it’s less exposed than competitors like Target, which leans heavily on imported goods.
The company’s still posting strong numbers, with U.S. same-store sales up 4.5% last quarter and e-commerce jumping 21%, especially among higher-income shoppers. But the tariff uncertainty led Walmart to skip its second-quarter profit forecast, a rare move signaling tough times ahead. McMillon, who met with Trump last month alongside other retail CEOs, has been blunt about supply chain disruptions, warning they’ll worsen by summer. He’s pushing for lower tariffs, especially on food, but for now, shoppers will bear some of the cost.
Trump’s team insists the economy’s holding up, with White House spokesperson Kush Desai pointing to low inflation data and healthy job growth. But economists like Brian Jacobsen of Annex Wealth Management warn of “demand destruction” if prices keep climbing, though a total economic collapse isn’t likely. Walmart’s betting on its reputation for value to keep customers coming, even if that means absorbing some costs to stay competitive. “We’ll play offense where we can,” Rainey said, hinting at strategic price cuts to gain market share.
For shoppers, the next few weeks could bring sticker shock. Stocking up now might save a few bucks, but with tariffs set to linger, budgeting will get trickier. As one social media user put it, “Walmart’s prices going up feels like a betrayal, but it’s not their fault—it’s the trade war.” Whether you’re grabbing groceries or a new TV, the reality is clear: your Walmart run’s about to cost a bit more, and there’s no easy fix in sight.
