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The retail giant announced the plan days after the Trump administration raised tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent. The decisions, which came after trade talks between the two sides fell apart, is expected to lead to higher prices on everything from clothing and footwear to electronics.
“Increased tariffs will lead to increased prices for our customers,” Walmart CFO Brett Biggs said during a conference call, noting that the company is “going to continue to do everything we can to keep prices low.”
Walmart did not say which of its many products would be affected by the price hikes, or how much prices would increase. Biggs said the company has had “mitigation strategies that have been in place for months” to address the possibility of more tariffs, including efforts to streamline its supply chain and lower manufacturing costs.
In addition to tariff increases already in effect, Trump is said to be considering duties on an additional $300 billion in Chinese goods amid an impasse in negotiations.
The company said it is “hopeful that an agreement can be reached” between the two countries.
Walmart isn’t the first retailer to warn that its customers will face higher prices. Macy’s CEO Jeff Gennette said earlier this week that it would be difficult to find a path “where you don’t have a customer impact” from further tariffs.
Walmart posted a same-store sales increase of 3.4 percent in the first quarter, or its highest rate of quarterly growth in nine years according to the company’s quarterly report on Thursday. The company also topped Wall Street’s expectations for quarterly profit.