Walmart on Thursday warned that even softer tariffs on China could soon force the company to raise prices.
The world’s largest retailer said President Trump’s wide-ranging levies on U.S. trade partners are impeding its ability to keep prices low.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon said in a statement Thursday.
The price hikes will go into effect later this month.
Walmart also pulled its quarterly profit outlook amid global economic uncertainty, as Mr. Trump vows to strike favorable trade deals with countries that are subject to steep levies on imports.
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