Walmart hikes prices amid Trump tariffs; some items see double-digit increases

Walmart hikes prices amid Trump tariffs; some items see double-digit increases

Walmart (WMT), the largest U.S. retailer, has been raising prices on some items due to the escalating U.S. tariffs, according to recent reports. The price hikes are a direct consequence of President Donald Trump's tariff policies, which have been in effect since the beginning of the year. The tariffs have led to increased costs for imported goods, forcing retailers like Walmart to pass these costs on to consumers.

According to a Reuters report, some of Walmart's suppliers have put on hold orders from garment manufacturers in Bangladesh in response to the U.S. tariffs [1]. Bangladesh is a key textile hub and the third-largest exporter of apparel to the United States. The garment sector accounts for 80% of Bangladesh's export earnings and 10% of its GDP. Factory owners in Bangladesh have expressed concern about the potential impact of a 35% tariff rate on their orders. Patriot Eco Apparel, a garment manufacturer, reported that an order for nearly 1 million swim shorts for Walmart was put on hold due to the tariff threat [1].

In addition to the tariff threat, Walmart has been experiencing price fluctuations on various items. A CNBC analysis found that some household items on Walmart's shelves have higher prices, with items like baby gear and home goods seeing increases [2]. For instance, the price of a 12-piece set of pots and pans from Beautiful, a private-label kitchenware brand exclusive to Walmart, rose from $99 to $149. Similarly, a 12-inch frying pan from Beautiful climbed from $24.97 to $31.97. These price increases are likely due to the 30% tariffs imposed on goods imported from China.

Walmart's Chief Financial Officer, John David Rainey, stated that the magnitude of the tariff increases is more than any retailer can absorb, and the company is committed to keeping prices as low as possible [2]. However, the retailer has been forced to raise prices on some items to cover the increased costs. Despite these price hikes, Walmart has maintained its commitment to offering everyday low prices and has implemented numerous rollbacks to mitigate the impact on consumers.

The price increases at Walmart are part of a broader trend across the retail sector. Other retailers, such as Best Buy, Costco, Nike, and E.l.f. Beauty, have also raised or expect to hike prices due to the tariffs [2]. The impact of the tariffs on consumer prices has been more muted than initially feared, with some categories seeing significant price increases while others remain stable.

The ongoing uncertainty surrounding the tariffs has led retailers to adopt various strategies to manage the increased costs. Some retailers have imported goods early to avoid the tariffs, while others have used U.S. Customs-sanctioned foreign trade zones and bonded warehouses to store goods duty-free until they head to shelves. These strategies have helped retailers and brands to mitigate the number and magnitude of tariff-related price increases.

In conclusion, Walmart's recent price hikes are a direct result of the escalating U.S. tariffs. While the impact on consumer prices has been more muted than initially feared, the ongoing uncertainty surrounding the tariffs has led retailers to adopt various strategies to manage the increased costs. Investors and financial professionals should monitor the situation closely, as the tariffs could continue to impact the retail sector in the coming months.

References:
[1] https://stocktwits.com/news-articles/markets/equity/trumps-35-tariff-threat-ripples-through-walmart-s-bangladesh-supply-chain-report/ch8B1KwR5Np
[2] https://www.cnbc.com/2025/07/17/trump-tariffs-affect-walmart-prices.html