DawgTalkers.net Forums DawgTalk Palus Politicus INFLATION...

Walmart says it plans to raise prices despite lower U.S. tariffs

Walmart on Thursday warned that even softer tariffs on China could soon force the company to raise prices on certain items.

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 for its customers.

"We can control what we can control," Walmart CEO Doug McMillon said on the company's first quarter earnings call Thursday. "Even at the reduced levels, the higher tariffs will result in higher prices," he added.

The price hikes will go into effect later this month. Walmart, a bellwether for consumer spending, joins other larger retailers in warning that they are likely to raise prices as tariffs drive up their costs.

Rising cost pressures for retailers

The Trump administration on Monday said that, starting May 14, it is lowering the tariff rate on Chinese imports from 145% to 30% for 90 days. As part of that agreement, China will reduce its 125% tariff on American goods to 10%. The sides are expected to continue negotiations, although ongoing uncertainty over trade policy is weighing on companies.

"The merchandise that we import comes from all over the world from dozens of countries," McMillon said. "Other than the U.S., the other large markets are China, Mexico, Vietnam, India and Canada. China, in particular, represents a lot of volume in certain categories like electronics and toys. All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact. The cost pressure from all the tariff impacted markets started in late April, and it accelerated in May."

Still, the Walmart executive emphasized that the retailer will do what it can to avoid passing the import taxes onto customers.

"We'll do our best on what we can control in order to keep food prices as low as possible," McMillon said. "In some cases we are holding retail prices where they are despite the tariffs cost pressures."

Grocery prices dropped slightly last month, declining 0.1% from March, according to government data. However, many household costs remain elevated, the CBS News price tracker shows.

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.

Walmart earned $4.4 billion in the quarter ended April 30, down from $5.1 billion in the year-ago period. Revenue rose 2.5% to $165.6 billion, just short of analyst estimates.

Tariff hit on consumer spending

Walmart Chief Financial Officer John David Rainey said in the earnings call that the company expects the U.S. to strike more agreements with its trade partners, and that tariff rates could drop.

"However, if we see a restoration of dramatically higher tariff levels, the impact on our financials could be significant and even jeopardize our ability to grow earnings year-over-year," he added.

Tuan Nguyen, U.S. economist at consulting firm RSM US, said the latest retail data shows consumers are reducing their spending at stores and restaurants.

"We are now witnessing the first-order effects of tariffs on the economy — through reduced spending. The second-order impact — on prices — will likely emerge in the coming months, putting additional pressure on demand," he said in an email.

https://www.cbsnews.com/news/walmart-tariffs-price-hikes/

Biden was never the President. I am not sure who was, but Bidens brain was scrambled eggs.

Seriously, you people need to quit sticking up for that crap. Just move on and I'll forgive you. You got duped. His cabinet saw it every day.

And what about Comey? When are you going to admit you got duped by that POS?

Wasn't it Amazon that said they were going to start putting the cost of Tariffs on each product? Then Bezos backed off after he had a conversation with Trump. Makes we wonder, what does Trump have on Bezos? What's he afraid of getting out. Was he on Epsteins Island? Plane? Florida Party House?

Pot meet Kettle.

And so did you. Biden ended up with dementia and you chose a psychopath. Stop pretending your choice was any better.

You mean the same guy that announced Hillary was back under investigation just a few days before the election? But that's how you people roll. The very people that helped trump get elected you'll stab in the back later. So trump like.

Because you know, he did something against your feckless leader. And before you echo FOX News and trump, You can purchase 86 49 T-shirts on Amazon. several varieties in fact.


https://www.amazon.com/s?k=86+47+anti+trump+shirt&crid=2G0PLKEYKUQ96&sprefix=86+47%2Caps%2C104&ref=nb_sb_ss_p13n-pd-dpltr-ranker_1_5

A lot of people sell them. A lot of people buy them and a lot of people wear them. None of those people are under investigation.

When are you going to admit what's really going on here?

Trump tells Walmart to ‘eat the tariffs’ after retailer warned it will raise prices

President Donald Trump blasted Walmart

on Saturday after the country’s largest retailer warned this week that it will have to raise prices because of tariffs.

“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote on Truth Social. “Between Walmart and China they should, as is said, “EAT THE TARIFFS,” and not charge valued customers ANYTHING. “I’ll be watching, and so will your customers!!!”

Walmart CFO John David Rainey said in an interview with CNBC on Thursday that, “We have not seen price increases at this magnitude, in the speed in which they’re coming at us before, and so it makes for a challenging environment.”

Rainey said he is “pleased with the progress that’s been made by the [Trump] administration on tariffs from the levels that were announced in early April, but they’re still too high.” That is despite a 90-day reprieve that lowered duties on Chinese imports to 30%. Goods from dozens of other countries face a 10% duty.

He said that the retailer wants to keep its prices lower than competitors, especially at a time when shoppers are seeking discounts. To do that, he said Walmart will absorb some of the tariff-related higher costs and he expects suppliers to absorb some higher costs, too.

Rainey said the company will “try to work with suppliers to keep prices as low as we can.”

Walmart echoed that sentiment on Saturday when asked to comment on Trump’s post.

“We have always worked to keep our prices as low as possible and we won’t stop,” Walmart said in a statement. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”

Walmart joined a growing number of companies that have increased prices or warned that higher prices are coming due to tariffs. Microsoft

said earlier this month that it has increased the recommended retail prices of Xbox video game consoles and some controllers.

Barbie maker Mattel
announced earlier this month it is moving production out of China, but still expected to have price increases its toys. And Ford

warned last week it would have to raise prices on some cars.

Walmart maintained its sales forecast for the year on Thursday, but declined to provide an earnings or operating income forecast for the second fiscal quarter, citing the frequent changes in the Trump administration’s tariff policies.

Major U.S. retailers, including Target, Home Depot and Lowe’s, are expected to share their own outlooks on the impact of tariffs when they report results next week.

Shares of Walmart ended 2% higher on Friday at $98.24.

https://www.cnbc.com/2025/05/17/trump-tells-walmart-to-eat-the-tariffs.html

Moron said what?

Trump is delusional. No way will Walmart or China eat tariffs.

To think any business can eat a price increase of 30% is in fact delusional. But you can bet his followers don't think so.

Peen, take your meds. Biden was hands down more with it than Captain Von Crap-Stain who salutes the saudis like it’s his job. Dude is a national embarrassment of epic proportions. Unless you like him saluting foreign generals, comrade. And while we’re at it, how many times did Biden get our national credit rating lowered?

Well, your guy did…

https://www.reuters.com/markets/us/moodys-downgrades-us-aa1-rating-2025-05-16/

That’s real money talking there. The too big to give a fric money is sending Trump a message.

Maybe you need to upgrade your material for the tool time with Ballpeen hour.

Pit, they’d need a grasp on reality for that, so let’s not judge them so harshly. Being obtuse, uninformed, and or poorly educated is not a crime. Being stupid is not a crime. Being all the above and not understanding the world around you while exercising your right to vote at the same time should be a crime, though.

Just a side note, speaking to one of my neighbors the other day.. She is in here 70's I think. She was telling me that At least Trump found a way to money for us from China and other countries. She was referring to Tariffs. Trump told them that China would pay for it, and of course, only a moron would believe that....

Now that Trump is giving hell to Walmart and Amazon over a perceived slight by them letting folks know why prices are going up should be clear,,,,, Apparently not!

It isn't 30%. The previous base tax rate was 20%, so we are talking a 10% increase. You also have to know that all goods aren't taxed at the base rate. Many are, or were taxed as low a 7-8% under a favored nation rate. I am not sure how those will be affected.

China tariff ‘stacking’ pushes true cost of import taxes well above 30% on many consumer products

The Trump administration’s trade truce with China that paused the steepest tariffs on Chinese goods isn’t offering much of a reprieve to many importers. Stacking of multiple tariff layers already implemented during the trade war has pushed up costs to import retail goods much higher than the 30% associated with the tentative agreement.

“While companies are relieved to see a temporary pause from the incredibly high tariffs on goods from China, retailers are still facing very high tariffs that will have an impact on prices and supply,” said Josh Teitelbaum, senior counsel of Akin.

“Multiple layers of tariffs are a big problem for basic items like kids backpacks that come largely from China,” said Dan Anthony, president at Trade Partnership Worldwide. “You’re talking about rates of over 70%,” he said.

That includes the layering of existing 17.6% tariffs and Section 301 tariffs (related to unfair trade practices) of 25%, with the 30% in tariffs on Chinese goods not included in the pause — 20% fentanyl-related tariffs and 10% reciprocal tariffs.

Walmart CFO John David Rainey said in a CNBC interview after its earnings this week that prices of goods including food, toys, and electronics may increase due to tariffs. “We’re trying to navigate this the best that we can,” he said in the CNBC interview. “But this is a little bit unprecedented in terms of the speed and magnitude in which the price increases are coming,” he added.

Panjiva data shows from January 2025 to May 12, Walmart’s top three countries where shipments originate from are China (34.1%), followed by India (26.3%), and Hong Kong (10.6%).

For many importers, the true tariff tax on Chinese goods now ranges from 40% to 70%.

Teitelbaum offered footwear as an example, with a children’s or women’s sneaker that has a leather upper facing a 40% tariff if imported from China today, factoring in the “most favored nation” standard tariff under WTO rules of 10%, plus the 30% in fentanyl and reciprocal tariffs.

That stacking of tariffs pushes the true cost for many other retail goods much higher than 30%, including:

Cotton sweaters from China face a 46.5% tariff (16.5% most favored nation plus the fentanyl and reciprocal tariffs).
Women’s bathing suits from China face a tariff of 54.9% (24.9% most favored nation plus the fentanyl and reciprocal tariffs).
Baby’s dresses from China face a tariff of 41.5% (11.5% most favored nation plus the fentanyl and reciprocal tariffs).

Matt Priest, president & CEO of the Footwear Distributors & Retailers of America, told CNBC that a 40% tariff on the most popular category of imported women’s and children’s leather footwear is simply unsustainable for American families and footwear companies.

“These are everyday shoes — not luxury items — and applying compounded tariffs on them only drives up costs at the cash register,” said Priest. “With nearly $650 million worth of these shoes imported from China last year, it’s clear this policy disproportionately impacts working-class consumers. It’s time for a serious, bipartisan conversation about tariff reform that puts American families first.”

This stacking of tariffs has led some small businesses to cut product lines as a way to mitigate the financial strain. Anjali Bhargava, founder of spice company Anjali’s Cup, says her company will be discontinuing products as the special vacuum seal tins she uses sell out.

Even before the 30% tariffs hit, she was paying 25% in tariffs. “These tins were already more expensive than I could afford, but even if I could absorb the 30% tariff, as a small business owner handling so much on my own, I can’t afford the added stress of uncertainty about how the story might change during the months it would take to produce and ship the tins,” Bhargava said. “The past few months have been so destabilizing,” she added.

Bhargava said it is critical to maximize the potential of the working capital she has available and minimize unnecessary risks, given how expensive debt has become. Bhargava’s line of credit increased in interest rate to 23%, plus 2% to pull the money.

“My credit card interest rates are all in the high 20s so interest is a huge issue and ordering tins five to six months before I can sell them has been a big bottleneck,” Bhargava said. “I used what I could to buy the ingredients and packaging that are essential for those products and now I have to focus on building a stronger foundation for the company with those.”

Rick Woldenberg, CEO of Learning Resources, a family-owned company that makes educational toys and is suing the Trump administration over the tariffs — a hearing scheduled for May 27 — is only facing the 30% tariffs, but he said the jump from zero to 30% is steep. Even if the pause does put his company in a position of importing some items again, it comes at a high price.

“A 30% duty rate, when we used to pay zero, is a massive change in costs and will force a large price increase to cover it,” said Woldenberg. “I believe this tax is highly inflationary. We don’t like the idea of participating in driving up inflation, so we are hardly rejoicing over the news.”

He said a book of finished goods and work in progress in China that was part of production orders due in the 45-60 days after Trump’s April 2 global tariffs announcement will likely be imported from Chinese factory partners. “We now can and probably should relieve them of this inventory and try to sell it here. We will selectively restart production of particularly sensitive products, for various reasons, but resourcing continues and our migration away from China remains active,” Woldenberg said.

The small business owners all say the tariffs have taken a toll on the business and their trust in the process.

“We still don’t know what our costs are or will be, and assume that future decisions by this administration will be last minute, without advance notice and cause us further pain and disruption. We have no confidence looking forward,” Woldenberg said.

Rick Muskat, president of family-owned shoe retailer Deer Stags, which imports its goods from China and sells in major retailers including Macy’s, Kohl’s, JCPenney, and on Amazon, said even with the lowering of the Chinese tariffs, the stacking of all existing tariffs has increased exponentially.

“Even at the ‘reduced’ level this will cause serious cashflow problems,” said Muskat. “We were paying $60,000 per month. Now we are paying $360,000 per month. We have to cut expenses to cover this and find savings in payroll. It will also require us to raise prices for future deliveries,” he said.

“The damage of the past weeks cannot be undone and can only be addressed with some sort of longer term assurances and stability that enable us to make the best decisions on how to spend our money today, next week and next month, and set ourselves up for success in the future,” Bhargava said. “I will survive and I’m pretty optimistic that the business will too, but the stress to figure it out has been rough and has taken a toll on me. I’ve needed to really slow down and not panic, but I’m finding my way, step by step.”

https://www.cnbc.com/2025/05/16/china-tariff-stacking-true-cost-import-taxes-above-30percent.html

It's a little more complicated than you're trying to make it sound.

Inflation is out of control now. And what do we get from the right? We need to suffer before it’s going to get better?

Answer me this? Are you better off today than you were a year ago?

I believe they were originally talking about the impact from tariffs.

No,,, I'm not.

Inflation is out of control compared to what?

Last month? Last Year? 6 months ago? 2 years ago? 10 years ago?

1 year ago.

So are you better off now than a year ago? I’m definitely not.Tell me I’ll need to suffer more before it gets better and I’ll knock you out one by one.

Hard to say. Since the current policy has been in place 2 out of the last 12 months, it's a stupid question.

You need to give it at minimum year to year comparison.

This kinda crap is something that always happens.. The discussion is about inflation, and the only come back is talk of Comey and Biden..

By the way, Comey helped Trump get elected the first time with his very timely announcement that the investigation of Clinton will continue..... With no new evidence...

And as for Biden, his brain isn't and wasn't scrambled eggs.

That another talking point that is Dumber than a box of rocks. Then there is the outright lie that the economy was a mess under biden.. Trump told you to say that. He forced people to think that, it simply wasn't true. By investments went crazy under biden.. It was great.

Bidens inflation problem was of the making of Trump and the mess he left the country in.... Trumps mishandling of the pandemic was the key... He screwed that up bigly... What a moron...

The problem isn't Biden,, It's every Republican that ever held that office. Think I'm wrong? Ok,, Look at the mess each and several republicans left us in. Bush 1, Bush 2 Trump, They all left us in a mess.. And each time, Democrats came in and fixed it.

Look at the numbers for yourself...

Biden didn't create Covid. Trump created the tariffs. For some reason they can't tell the difference.

Delusional!!!

Peen or Daman?

Daman. Peen is fairly grounded in his reasoning.

So you don't think that both of them say outrageous things sometimes? Let's get this straight. 179 nations suffered from major inflation at the same time we did. That wasn't a "Biden issue". It was a global economic issue. Biden brought our economy back from the brink. That is factual. Trump created the tariff situation. All of the inflation created and the economy from there will rest squarely on his shoulders. Make no mistake, Biden left us with a healthy economy. Where it's goes from there is something trump keeps trying to blame Biden for. Trump has BDS. The only question from here is will people such as yourself keep believing the BS he is feeding you?

Biden 100% created the inflation in this country. He shut down the oil pipeline 1st day on the job and done many other stupid things that negatively impacted the economy. Bottomline is he was Jimmy Carter's 2nd term plain and simple. Now let's hope Trump can become Ronald Reagan and build the economy that can last 40 years like he did in the 1980's.

Biden 100% created the inflation in this country. He shut down the oil pipeline 1st day on the job and done many other stupid things that negatively impacted the economy. Bottomline is he was Jimmy Carter's 2nd term plain and simple. Now let's hope Trump can become Ronald Reagan and build the economy that can last 40 years like he did in the 1980's.

Biden 100% created the inflation in this country. He shut down the oil pipeline 1st day on the job and done many other stupid things that negatively impacted the economy. Bottomline is he was Jimmy Carter's 2nd term plain and simple. Now let's hope Trump can become Ronald Reagan and build the economy that can last 40 years like he did in the 1980's.

I see you have zero interest in the facts. That seems to be the real pandemic here..................

Inflation Rate 2024: A Global Comparison

May 8, 2024

The Consumer Price Index only tells part of the story.

Two years ago, inflation reached a 40-year high in the United States. Globally, it grew in 179 out of 194 nations compared to 2020.

https://gfmag.com/data/economic-data/worlds-highest-lowest-inflation-rates/

You're not interested in facts. You're only interested in a GOP fairy tale.

I watched Ronald Reagan as president. Trump is the opposite of Reagan.

Ronald Reagan signed the Immigration Reform and Control Act of 1986. The Act granted amnesty to roughly 2.7 million undocumented residents who entered the US before 1982, making them eligible for legalization.

You elected the anti Ronald Reagan.Your party has deserted its values to follow a wanna be strong man. It's shameful that you evoke the name Ronald Reagan in any shape or form in comparison with trump. Ronald Reagan is probably rolling over in his grave right now seeing what the GOP has become.

Inflation is NOT a lightswitch that is flipped on and off on a whim. Biden owns a portion of the responsibility of inflation felt over the course of his term (he, like most dems, was way too fast and loose with handing out stacks of cash). But inflation, like the economy in general, turns like a freighter on the ocean (takes a long time). Biden inherited an economy that was dealing with the after-effects of COVID. Inflation was going to be rough, regardless, and he exacerbated that.

The flipside is that inflation finally started turning the corner towards the end of his term. Trump is coming in with inflation trending in the right direction.

Gas prices January 20, 2021, was $1.86 per gallon on January 20, 2025, was $3.06 per gallon. Biden's actions caused the $1.20 increase per gallon by the way on January 20, 2016, gas prices were $1.87 per gallon. So Obama and Trump had better gas prices that Biden. Why is that you think?

Using January 2021 as a benchmark is flawed logic, but politically opportunistic.

No one was driving around during the pandemic, of course gas prices were low.

I understand things have changed and not for the better. Trump in a lot of ways more closely represents Democrats economic views of the 1980's.

Reagan hated unions. Made no bones about it. Trump is actually cozy with unions. They would have disagreed here a lot.

Reagan was more prone to strike and act using the military. Trump tries to avoid war at all costs and tries to use negotiating tactics with both allies and enemies.

Reagan was much tougher on drugs inside the country. Trump tries to stop the flow of drugs coming into the country.

Reagan liked the John Kennedy philosophy of trickledown economics and so does Trump. They both understood when the person doing the hiring makes money, they in turn hire people and invest in their businesses. If the person that does the hiring losses money, they in turn lay people off and does not invest in growth at that time.

Reagan was a free trader, and Trump wants even trade and is employ the negotiation tactics used in business to try to even the playing field. They would have disagreed here a lot.

The border was not a huge issue in the 1980's we did not have near as much illegal crossings as we have now. I strongly believe Reagan would have drawn a hard line here in today's world vs the world he lived in. He did believe the United States was a beckon of hope for the world, but he would have never allowed the numbers to cross the border that was crossing in the last 15 years. He was also tough on crime and the sheer number of gang affiliated crime that pours over the border he would not have allowed.

Reagan was more of a hard liner than Trump on the world stage. Reagan though would make jokes and poke fun at liberal policies domestically and Trump gets too personal with his attacks. Trump had 3 really good years in his first term and then covid happened. He should have never shut down the economy. That was a mistake. I think if he could do what he did then this country will be fine. That starts with deporting the bad element that crossed the border. The tariffs while unfair to the workers of the United States it is hard to undo. I hope it works. The economy Biden left was only this bad once in my lifetime and that was under Carter.

Are you deliberately stating mistruths or do you have bad info. Inflation rate April 2025 is 2.3% with a month over month rate of .2%. In April 2024 it was 3.4% with a month over month of .3%. Data from Department of Labor.

Why don’t you wait until there is inflation to b’’’’ and moan about it. Instead of making up “facts” and spreading them.

Re: trickle down economics:

Just from googling:

AI Overview



While trickle-down economics, the theory that tax cuts for the wealthy will benefit the broader economy, has been a topic of debate for decades, studies generally do not support its efficacy. Many studies, including one from the London School of Economics, have shown that tax cuts for the rich primarily benefit the wealthy themselves, with minimal impact on job creation or overall economic growth.

This has been stated over and over and over again, with stock buybacks by the boatloads to prove it.

This is where I throw my hands up because this keeps getting defended but the data against the theory is mountainous.

It’s also a Reagan twist on conservativism. OG conservatives are not pro trickle down.