Under the tariff storm, Walmart confirms it will soon face unprecedented price increases, and the entire U.S. retail industry may follow suit.
On May 15, global retail giant Walmart sent a clear signal to the market while releasing its better-than-expected quarterly earnings report: price increases triggered by tariffs are imminent. Walmart warns that the price increases caused by tariffs are expected to soon affect the goods on shelves, and the company will start raising prices on some products this month.
Walmart's Chief Financial Officer John David Rainey stated in an interview, &#34;If you haven't seen (price increases), it will happen in May, and then it will become more apparent.&#34; Rainey bluntly said, &#34;The magnitude and speed of these price increases will be unprecedented.&#34;
Rainey further indicated, &#34;If something has a 30% tariff, you are likely to see double-digit (price increases).&#34;
As a retail giant serving 90% of American consumers, Walmart is the largest company to suggest that everyday goods will see price increases due to tariffs. Analysts believe that Walmart's move will open the floodgates for widespread price increases in the retail industry.
<h2>The floodgates for retail price increases may have already opened</h2>
According to Axios, Neil Saunders, Managing Director of GlobalData, believes, &#34;If a low-price-centric player like Walmart is raising prices, it explains why other retailers may follow suit. Walmart is being honest about this, which encourages other retailers to engage in open dialogue as well.&#34;
In fact, other companies have already announced price increase plans. Ford Motor Company announced last week that it would raise prices on three of its best-selling models. Luxury brand Hermès also stated that prices in the U.S. market will increase. Next week, Target, Lowe's, and Home Depot will announce their earnings and discuss their financial forecasts, and investors will closely watch whether they will follow the price increase trend.
Walmart CEO Doug McMillon mentioned the &#34;reality of thin margins in retail&#34; during the earnings call and stated, &#34;Given the scale of the tariffs, we cannot absorb all the pressure even at the reduced levels announced this week.&#34; This means that even if the U.S. and China reach a temporary agreement to reduce additional tariffs from 145% to 30%, price increases remain inevitable.
Ram Reddy, Chief Technology Officer of Nagarro Digital Engineering, stated that he expects electronics and toys to be the main categories for Walmart's price increases. Meanwhile, McMillon indicated that Walmart will keep food and consumables prices &#34;as low as possible,&#34; but tariffs from countries like Costa Rica, Peru, and Colombia are putting pressure on imported goods such as bananas, avocados, and coffee.
If even Walmart, which promotes the slogan &#34;Save money, live better,&#34; struggles to maintain its low-price promise, American consumers and the entire retail industry may face an unprecedented price storm.

Walmart stated that the magnitude and speed of price increases will be unprecedented. If even Walmart, which promotes the slogan "Save Money. Live Better," struggles to maintain its low-price commitment, American consumers and the entire retail industry may face an unprecedented price storm

- Walmart has announced significant price increases due to tariffs, impacting products on shelves across the U.S. retail sector.  
- CFO John David Rainey indicated that price hikes could reach double digits for items affected by tariffs, marking an unprecedented shift in retail pricing.  
- This move by Walmart may prompt other retailers to follow suit, as evidenced by recent price increase announcements from companies like Ford and luxury brand Hermès.

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The impact of tariffs on U.S. inflation is coming! Walmart leads the price increase, and other retailers will follow suit