Walmart, Inc. (NYSE:WMT) the world's largest retailer, faces challenges in maintaining its signature low prices after President Donald Trump's administration imposed steep tariffs on Chinese imports. Walmart employees and shoppers now report price hikes hitting the shelves and their wallets.
What To Know: Walmart employees have been sharing images on Reddit that depict a sharp rise in prices, with some items seeing a surge of up to 45%.
For example, a Jurassic World T. Rex toy at Walmart saw its price increase nearly 38% from $39.92 in late April to $55 in late May.. The price of a Baby Born doll shot up from $34.97 in March to $49.97 in May, an approximate increase of 43%.
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Roughly 60% of Walmart's merchandise is sourced from China, including essentials like electronics, clothing and household goods, which leaves the retail giant vulnerable to shifts in trade policy.
Walmart CEO Doug McMillon warned on the company's most recent earnings call that the retailer would be forced to raise prices on some items as a direct result of ongoing tariffs, but that the company would work to keep grocery prices low.
What Else: Walmart said it will continue to communicate the impact of tariffs transparently and consistently with its investors, employees and consumers during its annual shareholders' meeting last week.
"We don't aim to be a political figure. We are providing facts as they come," Dan Bartlett, executive vice president of corporate affairs, told reporters.
The retail giant said it expects price increases to become more apparent as the year progressesif the current tariffs remain in place.
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