Walmart says it will raise prices due to tariffs. What NC shoppers should know
Walmart, the retailer that prides itself on its “everyday low prices,” is expecting to soon make some items more expensive in response to tariffs.
Company executives said in Thursday, May 15 earnings call that even though rates of tariffs, which are taxes on imported goods, have been temporarily lowered, Walmart has still been dealing with higher costs.
“We will do our best to keep our prices as low as possible,” said C. Douglas McMillon, the president, CEO and director of Walmart, Inc. “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.”
This announcement could affect many shoppers across the U.S., including in North Carolina, where Walmart has the highest market share of any grocer in the Triangle and in Charlotte.
Which items is Walmart making more expensive?
Walmart executives gave general information about which categories of items may be pricier.
The company said that it knows its customers have been dealing with increased food prices in recent years, and it said it “won’t let tariff-related cost pressure on some general merchandise items put pressure on food prices.”
However, Walmart acknowledged that many goods such as bananas, avocados and coffee are imported from places including Costa Rice, Peru and Colombia, meaning they are subject to tariffs.
“We’ll do our best to control what we can control in order to keep food prices as low as possible,” McMillon said.
Walmart sources most of its goods from the United States but imports about a third from across the world, McMillon said. China is one of the largest markets, with many electronics and toys coming from that country. As of publication, the U.S. has placed a 30% tariff on goods imported from China, which is a reduction from the 145% rate in place earlier this month but still higher than the 10% tariff on all imports.
Those higher tariffs on China will have the “biggest impact,” McMillon said.
In response to Walmart’s announcement, President Donald Trump wrote on social media that the Arkansas-based retailer should “EAT THE TARIFFS,” rather than passing prices onto customers.
When could Walmart shoppers see price increases?
Walmart is dealing with a “dynamic and fluid environment,” and there are still many unknowns regarding tariffs, Walmart CFO John David Rainey said.
“We do know that we’re probably going to be in a period in the second quarter where we’re going to see more markups than normal,” Rainey said.
However, there may be markdowns later in the year, Rainey said.
Have any other retailers made similar announcements?
Walmart is not the first retailer to warn of increased prices following tariff announcements.
- Fast fashion retailers Shein and Temu told customers they were raising prices in response to tariffs. The companies previously avoided paying the taxes because of an exemption for shipments of goods worth less than $800, but that “de minimis” exemption expired.
- Mattel, which makes Barbie, has also said it would raise prices.
This story was originally published May 19, 2025 at 1:47 PM with the headline "Walmart says it will raise prices due to tariffs. What NC shoppers should know."
