Walmart Acknowledges Possible Impact of Trump's Tariffs on Its Business

Retail giant prepares for potential higher costs due to trade duties, especially on imports from Canada and Mexico

Walmart is bracing for possible repercussions from President Donald Trump’s planned tariffs, particularly if the administration follows through with its proposed duties on imports from Canada and Mexico. The retail giant's executives acknowledged that while the company sources a significant portion of its products from the United States, it will not be entirely shielded from the financial effects of trade taxes.

In a recent interview with CNBC, Walmart’s Chief Financial Officer, John David Rainey, addressed the potential consequences for the retailer. He explained that despite sourcing around two-thirds of its products domestically, Walmart is unlikely to remain immune to the tariffs, especially those that may be implemented on neighboring countries. The company is closely monitoring the situation but has not yet included any potential tariff impacts in its future financial forecasts, as the government’s actions remain uncertain.

Rainey emphasized Walmart’s preparedness, saying that the company has operated in a tariff-heavy environment for the past several years. He highlighted that Walmart has developed strategies to mitigate rising costs, including working closely with suppliers, leveraging its private brand, and adjusting its supply chains. This flexibility would allow Walmart to manage costs effectively and, where possible, pass on savings to customers.

However, the CFO also warned that there will likely be instances where the cost of goods increases due to the tariffs. These hikes would, in turn, contribute to higher prices for consumers. Rainey mentioned that tariffs are inherently inflationary and could pressure households with already rising living expenses.

As it stands, only a supplemental 10% tariff on Chinese imports has been fully implemented, although President Trump has indicated further trade taxes on a wide range of goods, including automobiles, pharmaceuticals, semiconductors, and lumber. Some of these new tariffs are set to take effect as early as next month, putting more strain on both businesses and consumers.

The impact of these trade measures is already a key point of discussion among U.S. companies. Over 190 calls in 2025 have referenced the word “tariffs,” and experts predict that the number will continue to rise, potentially reaching a five-year high. Many companies, including Walmart, have refrained from factoring these costs into their financial projections due to the unpredictability of the tariffs’ implementation. However, these discussions are being carefully observed by the broader business community, with companies like Cisco preparing for various scenarios depending on the specifics of the tariffs.

The Federal Reserve has also weighed in on the issue, noting that tariffs could contribute to rising inflation, as businesses may pass on higher input costs to consumers. With mounting concerns over inflation, the central bank has emphasized that potential changes in trade policy are an important factor in shaping economic forecasts.

Walmart and other major U.S. companies will continue to navigate this complex situation, balancing the potential financial impact of tariffs with strategies to keep costs manageable for both themselves and their customers. As new tariffs loom, the full extent of their effect on the economy and on retailers like Walmart will become clearer in the coming months.