“Higher Tariffs Will Result in Higher Prices,” Warns Walmart CEO

“Higher Tariffs Will Result in Higher Prices,” Warns Walmart CEO

The CEO of Walmart on Thursday said that higher tariffs in the Trump Administration will “result in higher prices.”

Doug McMillon, the head of the world’s largest retailer, made the comments during an earnings call on Thursday, according to reports. 

“We will do our best to keep our prices as low as possible. 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,” said McMillon.

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“The higher tariffs will result in higher prices,” he added. 

 

Costs to Consumers

Tariffs on China are raising costs on electronics and toys, McMillon said, and some food costs are going up from tariffs on Costa Rica, Peru and Colombia, according to CNN.

Walmart said the price hikes will begin later this month.

“I’m concerned that consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June,” said Walmart finance chief officer John David Rainey in an interview with CNBC on Thursday.