Walmart CFO Says They Don’t Want To Raise Prices, But ‘Prices Will Go Up For Consumers’ Due To Upcoming Tariffs

Walmart’s CFO, John David Rainey, recently said that if President-elect Donald Trump’s proposed tariffs take effect, Walmart (NYSE:WMT) will need to raise prices on certain items.

Speaking with CNBC, Rainey explained, “We never want to raise prices. Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”

These proposed tariffs include a 10-20% tax on all imports and could go as high as 60-100% on products from China. Retailers like Walmart, AutoZone, Lowe’s and others are already speaking out about how these potential changes could make everyday goods more expensive for customers.

The majority of goods Walmart sells are not at risk of tariffs, as about two-thirds of the items sold by Walmart are made, grown or assembled in the U.S. However, tariffs may have a major effect on the remaining one-third of imported goods. In recent years, Walmart has been expanding its supply chain by sourcing from other countries to lessen its reliance on China.

Lowe’s CEO Marvin Ellison also expressed concern, saying they’re talking to suppliers to understand how the tariffs might affect prices.

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