Walmart CFO Warns of Potential Price Increases Due to Trump Tariffs

Tuesday, 19 November 2024, 21:31

Walmart CFO highlights that potential price increases may occur if Trump's tariffs take effect, stating the aim is to maintain low prices. John Rainey emphasizes strategies to mitigate consumer impact amidst proposed tariffs on imports. The retail giant remains committed to domestic sourcing.
Thehill
Walmart CFO Warns of Potential Price Increases Due to Trump Tariffs

Walmart CFO Addresses Rising Prices

A Walmart executive has indicated that if President Trump implements proposed tariffs on imports, prices at the retail giant may see an increase. In an interview with CNBC, CFO John David Rainey remarked, “We never want to raise prices,” but acknowledged the reality of potential price hikes due to tariff impacts.

Trump's Tariff Proposals

Trump has suggested imposing a 10 to 20 percent tariff on all imported goods and tariffs hovering around 60 percent on Chinese imports. This economic strategy has garnered support from many Republicans, who believe a reset is necessary in America's relationship with China.

Walmart's Sourcing Commitment

  • Walmart confirmed that two-thirds of merchandise sold in the U.S.
  • 93 percent of merchandise in Mexico is sourced domestically.
  • This commitment aligns with a $350 billion investment in U.S.-made products made in 2021.

Despite potential challenges posed by tariffs, Rainey is optimistic about Walmart’s ability to navigate this landscape. He noted, “Tariffs are inflationary for customers,” highlighting the company's goal to keep prices down by collaborating with suppliers and enhancing its private brand offerings.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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