Walmart announces price hikes due to tariffs

Walmart CEO Doug McMillan made the announcement.

Transcript

00:00The world's largest retailer is raising prices, and it's blaming the White House.

00:04Walmart announced it has no choice but to increase the prices on some of its items,

00:08claiming President Trump's trade war is upping the company's costs.

00:11On its recent earnings call, CEO Doug McMillan told investors,

00:15we will do our best to keep our prices as low as possible.

00:18But given the magnitude of the tariffs, even at the reduced levels announced this week,

00:22we aren't able to absorb all the pressure given the reality of narrow retail margins.

00:26The higher tariffs will result in higher prices.

00:30Unlike many of its competitors, only a small portion of Walmart's inventory comes from China,

00:34around 15%.

00:35Groceries make up around 60% of its items, and most of those are sourced from within the U.S.

00:40In its earnings call, the retailer said sales at stores open for at least one year rose 4.5% last quarter.

00:46Walmart said the price hikes will go into effect later in May.

00:50That'll do it for your Daily Briefing.

00:51From New York City, I'm Kelsey Barbario with The Street.