According to Reuters on May 16, Walmart executives said on Thursday that due to rising tariff costs, the company will start raising prices of some goods by the end of May. As the largest retailer in the United States, Walmart's statement shows that the Trump administration's trade policy has begun to affect terminal consumption and is expected to have a direct impact on U.S. household spending.

Walmart Chief Financial Officer John David Renney said in an interview with CNBC that American consumers will start to see prices rising by the end of May, and the price increase in June will be more obvious. He added on the earnings call that the company will reduce some orders and evaluate price elasticity.

To alleviate cost pressure, Walmart is working with suppliers to try to replace imported components with materials that are not affected by tariffs. For example, replace aluminum with fiberglass.

However, CEO Macmillan said the company has little room for adjustment in food imports. Some fresh products such as bananas, avocados, coffee and roses rely on imports from countries such as Costa Rica, Peru and Colombia, and it is difficult to find a feasible alternative.

Despite cost pressure, Walmart maintained its full-year performance guidance for fiscal 2026. The company expects adjusted earnings per share to be between $2.50 and $2.60 for the fiscal year ended January 2026, with revenue to grow by 3% to 4%.

In addition to Walmart, other companies are also dealing with the impact of tariffs. German sandal maker Birken said on Thursday that it would raise prices worldwide to offset the impact of the US imposing 10% tariff on EU goods.

In response to Walmart's price increase, the White House said that recent inflation data was lower than market expectations and private demand and employment growth remained healthy. The spokesperson said that the government will continue to work hard to reduce the cost of living through tariffs, trade agreements, relaxation of regulation and tax cuts. (International Financial News)