Last week, anticipated price hikes at Walmart attracted headlines across the country after CEO Doug McMillon warned that certain items would become more expensive as a result of President Donald Trump’s tariff policies.
During the company’s first-quarter earnings call for fiscal 2026, McMillon emphasized the retail giant’s commitment to keep priced competitive. “We will do our best to keep our prices as low as possible,” he said.
However, he warned that it would be difficult for Walmart to absorb all costs. He continued,” “Given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
According to McMillon, the company would do its best to keep food and consumable costs as low as possible, but some food items—like coffee, bananas, and avocados, typically imported from countries like Costa Rica, Peru, and Colombia—would likely be more at risk of higher prices.
Trump weighs in over the weekend
On Saturday, Trump took to Truth Social to lash out at the big box retailer. He posted: “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!!!”
Officials for the United States and China announced earlier this month that an agreement had been reached to pause most tariffs for 90 days. However, uncertainty remains among retailers, given that Trump has frequently flip-flopped on his approach to tariffs.
On Sunday, during an interview with NBC’s Meet the Press, Treasury Secretary Scott Bessent told moderator Kristen Welker that he had talked to McMillon on a phone call and was told that Walmart is going to “eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20.”
When asked about the retailer’s stance on the potential for price increases, a Walmart spokesperson gave Fast Company the following statement: “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Walmart stock slips on Monday
Either way, investors are likely feeling on edge because of the tariff turmoil. On Monday morning, Walmart shares (NYSE: WMT) were down more than 2% in early trading.
Markets were mostly down on Monday morning in the wake of Friday’s credit-rating downgrade from Moody’s, although not as sharply. The S&P 500 was down 0.73% while the Dow Jones Industrial Average was down 0.42%.