Walmart, the largest U.S. retailer, has warned that new tariffs on imported goods could soon lead to price increases on a wide range of products, with the impact potentially beginning later this month. The announcement follows the Biden administration’s latest round of tariffs—ranging from 10% to 30%—imposed on various international imports, including steep increases on Chinese goods.

During a Thursday call with investors, Walmart CEO Doug McMillon acknowledged the company’s appreciation for the administration’s temporary delay in some additional tariffs. However, he made it clear that the scale and scope of the new trade measures would likely force the company to raise prices. “We’ve done our best to absorb costs,” McMillon said, “but with tariffs this significant, it’s impossible to fully shield customers from the impact.”

China Still Central to Walmart’s Supply Chain

Although more than two-thirds of Walmart’s inventory sold in the U.S. is manufactured, grown, or assembled domestically, China remains a key supplier for several major categories—including electronics, toys, and small household goods. Executives emphasized that these tariffs would be especially disruptive in those areas.

Walmart also noted that import tariffs from other trading partners—such as Colombia, Peru, and Costa Rica—are contributing to increased costs for consumer staples like bananas, coffee, avocados, and flowers.

Chief Financial Officer John David Rainey told U.S. media outlets that customers could begin seeing higher prices in stores this month, with more noticeable changes expected by June.

Canadian Retailers Also Brace for Impact

North of the border, Canadian retailers are facing a similar situation. In response to U.S. tariffs, Canada has enacted retaliatory measures, driving up the cost of American goods. Loblaw Companies Limited, Canada’s largest food and pharmacy retailer, has warned that price increases are also on the way. CEO Per Bank posted on social media that as pre-tariff inventory runs out, “a significant wave of price hikes” is expected to hit Canadian consumers. He also noted that little progress has been made in resolving the tariff standoff with the U.S.

Concerns Over Consumer Spending and Economic Growth

The looming price increases have reignited debates over the broader economic effects of ongoing trade tensions. With consumer spending accounting for a major share of both the U.S. and Canadian economies, analysts are watching closely to see how higher retail prices could influence overall economic growth and household budgets.

Despite the tariff headwinds, Walmart executives expressed optimism about their ability to manage the challenge. They said the company was working to keep food prices stable and would remain flexible in shifting supply chains if customer resistance to higher prices becomes significant.

Walmart stopped short of offering a precise forecast for short-term profits, citing the unpredictable trade environment. Still, the company reaffirmed its commitment to its full-year financial goals—including a target to grow earnings faster than sales, suggesting confidence in its ability to pass on some of the additional costs without major financial setbacks.

Strong Start to Spring

Despite a slow start to the year, attributed in part to adverse weather in February, Walmart reported a solid rebound in March and April. For the quarter ending in April, the retailer’s total revenue rose 2.5% year-over-year to $165.6 billion, while comparable sales in U.S. stores increased by 4.5%. Net profit for the quarter came in at $4.4 billion, marking a 12% drop compared to the same period last year—largely due to increased costs and ongoing supply chain pressures.

As the tariff situation evolves, Walmart’s ability to adapt its pricing and sourcing strategies will be closely watched—not just by investors, but also by millions of households already coping with inflation-driven cost pressures