Prices may go up on some items at Walmart stores as a result of tariffs on Chinese goods levied as a part of the trade war with China, according to CNN.
Walmart Chief Financial Officer Brett Biggs told reporters on an earnings call that the tariffs have had an impact on the business, forcing Walmart to adjust accordingly.
“We’re going to continue to do everything we can to keep prices low. That’s who we are. However, increased tariffs will lead to increased prices, we believe, for our customers,” Biggs said on the call.
What prices will go up?
Biggs did not detail exactly which items would be more expensive to compensate for the tariffs.
Walmart imports 26 percent of its merchandise from China, which is actually a relatively low level of exposure to China than that of other retailers, including rival superstore chain Target.
How is the company doing?
Walmart reported strong first quarter numbers, with a sales growth of 3.4 percent over last year, its fourth-straight quarter of 3 percent or higher growth. For that growth, Biggs credits the economy under the Trump administration.
“The U.S. business continues to benefit from a healthy economic environment,” CFO Biggs said in a statement.
Not just Walmart
Other companies are beginning to feel pressure to raise prices due to the Chinese trade war. Macy’s CEO Jeff Gennette has already pulled the trigger.
“If the potential fourth tranche of tariffs is placed on all Chinese imports, that will have an impact on both our private and our national brands,” Gennette said.
The Trump administration decided to increase tariffs on $200 billion in Chinese goods last week, with more potential tariff increases to come on items from China that aren’t already taxed.
Despite companies raising or considering increasing prices for consumers, Pres. Trump maintains that such price hikes are unnecessary.
“There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today,” Pres. Trump wrote on Twitter this week. “This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree.”