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https://www.npr.org/2025/08/21/nx-s1-5509592/walmart-tariff-costs-rising-earnings
Walmart says it has been able to mitigate many of the tariff costs so far, but they are rising "each week" and will continue to do so through the rest of the year.
The world's largest retailer — like many others, including Home Depot and Target — has had to raise prices on some items, while keeping prices down on others. Walmart says its top back-to-school products were even cheaper this year than last year.
Still, the Trump administration's tariffs on virtually all imports loom large for all retailers who are seeing the cost of goods rise. Previously, when President Trump was threatening tariffs up to 145% on Chinese imports, Walmart drew his ire by saying that would lead to higher prices.
On Thursday, Walmart CEO Doug McMillon said his company's costs keep climbing: "We've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters," he said on an earnings call.
Walmart continues to attract more higher-income shoppers looking for deals, McMillon said. And where some items did go up in price, middle- and lower-income customers in particular sometimes switched or skipped those purchases. But broadly, he said, tariffs haven't prompted "dramatic shifts" in shopping behavior.
"The impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted," McMillon said.
Overall, shoppers keep spending at stores and restaurants. Walmart's sales in the U.S. grew 4.6% in the latest quarter. Home Depot on Tuesday said its U.S. sales in the three months that ended August 3, rose 1.4%, which was much more than earlier this year. The home-improvement chain said people have moved on to smaller projects, while delaying major renovations — largely out of worry about where the economy is headed.
Walmart says it has been able to mitigate many of the tariff costs so far, but they are rising "each week" and will continue to do so through the rest of the year.
The world's largest retailer — like many others, including Home Depot and Target — has had to raise prices on some items, while keeping prices down on others. Walmart says its top back-to-school products were even cheaper this year than last year.
Still, the Trump administration's tariffs on virtually all imports loom large for all retailers who are seeing the cost of goods rise. Previously, when President Trump was threatening tariffs up to 145% on Chinese imports, Walmart drew his ire by saying that would lead to higher prices.
On Thursday, Walmart CEO Doug McMillon said his company's costs keep climbing: "We've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters," he said on an earnings call.
Walmart continues to attract more higher-income shoppers looking for deals, McMillon said. And where some items did go up in price, middle- and lower-income customers in particular sometimes switched or skipped those purchases. But broadly, he said, tariffs haven't prompted "dramatic shifts" in shopping behavior.
"The impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted," McMillon said.
Overall, shoppers keep spending at stores and restaurants. Walmart's sales in the U.S. grew 4.6% in the latest quarter. Home Depot on Tuesday said its U.S. sales in the three months that ended August 3, rose 1.4%, which was much more than earlier this year. The home-improvement chain said people have moved on to smaller projects, while delaying major renovations — largely out of worry about where the economy is headed.
