Walmart, America’s largest retailer, said Thursday it will raise prices on some products as a result of the Trump administration’s tariffs on Chinese goods.
“We’re going to continue to do everything we can to keep prices low. That’s who we are. However, increased tariffs will lead to increased prices, we believe, for our customers.” Walmart chief financial officer Brett Biggs told reporters on a call after the retailer reported earnings for the first quarter of 2019.
Biggs did not say which items will become more expensive at Walmart. He noted, however, that Walmart’s merchant teams have been developing strategies to mitigate cost increases and working with its suppliers to manage prices.
Walmart has less exposure to China than many other retailers because more than half of its sales come from groceries. Most of the food Walmart sells comes from the United States and other regions such as South America.
But Walmart (WMT) still imports 26% of its merchandise from China, UBS analyst Michael Lasser estimated in a report earlier this week. Target (TGT) imports 34% of its products from China. Other companies, including sporting goods, auto parts and furniture sellers, have even greater exposure to China.
Last week, the Trump administration hiked tariffs on $200 billion of Chinese-made goods. The tariffs mostly hit industrial materials and component parts, but also applied to luggage, hats and gloves for US importers.