WALMART is staying on its toes amid the potential impact of President Donald Trump’s tariffs on its operations.
CEO Doug McMillon delivered a strong message to customers as the retail giant navigates the economic landscape.
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“We know what our purpose is,” McMillon said during an investor presentation this week.
“And while we don’t know everything that’s going to happen, of course, we do know what our priorities are.”
“We’ll be focused on keeping prices as low as we can,” he added.
“We’ll be focused on managing our inventory and expenses well.”
This is likely music to the ears of customers who have been stocking up on grocery essentials before anticipated cost increases take effect.
McMillon also issued confidence for Walmart as it has had to “manage through turbulent periods” before, “especially these last couple of years.”
“It’s clearly a fluid environment,” he explained to bankers, investors, and reporters at the presentation.
The retail giant also recently adjusted its financial outlook for the year amid the global reciprocal tariffs announcement from President Trump.
IMPORT IMPLICATIONS
It noted uncertainty particularly due to the rates placed on China and Vietnam, two countries from which it sources many goods.
China notably faces a 125% tariff after President Trump argued that the country showed a “lack of respect” during recent negotiations.
Vietnam’s was set at 46%, and the country has since offered to remove all tariffs on United States imports in response.
Still, the global reciprocal tariffs won’t go into effect for 90 days after a pause was placed by the Trump administration on Wednesday.
Either way, Walmart said in a news release that when the tariffs do go into effect, it could impact the company’s first-quarter profits.
The retailer still expects sales to remain stable for the entirety of 2025.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
Walmart explained in the release that it will “maintain flexibility to invest in price as tariffs are implemented.”
Its shares also skyrocketed by over 9% on Wednesday after the 90-day pause on the global reciprocal tariffs was confirmed.
LOOKING AHEAD
CFO John David Rainey noted at the investor presentation that the ongoing tariff updates have made operating income “harder to predict,” and that Walmart is “still working through what this [tariff environment] means for us.”
The products that Walmart sells are still about two-thirds domestic or at least assembled in the States, according to Rainey.
He also added that China and Mexico were the “most significant” for imports.
“We’re focused on the long term,” Rainey added.
“What history tells us is that when we lean into these periods of economic uncertainty, Walmart emerges on the other side with a greater share and a stronger business. And we don’t expect this current period to be any different.”
Some other companies have also braced for anticipated tariff impacts recently.
Coca-Cola’s CEO said a packaging change could occur as a result.
Toy maker Mattel is also adjusting as it expects material costs to increase.