Walmart CFO Warns Proposed Tariffs Could Hike Prices for Shoppers
Walmart’s Chief Financial Officer, John David Rainey, has cautioned that tariffs proposed by President-elect Trump may result in higher costs for customers. In an interview with Liz Claman on The Claman Countdown, Rainey stated, “Tariffs are going to be inflationary. There’s no disputing that. Likely, consumers are going to pay more for the items that these tariffs are applied to.”
The proposed plan includes a universal tariff ranging from 10% to 20% on imports from all countries, alongside an additional 60% to 100% tariff specifically targeting goods imported from China.
Rainey highlighted that while two-thirds of Walmart’s merchandise is made, grown, or assembled in the United States, the company is not exempt from the impact. “We have suppliers from across the globe, including China and other parts of Asia,” he noted. “We will work with our suppliers and adjust our private brand offerings to mitigate price increases for our customers.”
A Walmart spokesperson expressed concerns about the potential impact of steep tariffs, stating that such measures could raise costs for consumers, especially as many are still grappling with lingering inflation. While Rainey acknowledged some deflation in areas like consumables and general merchandise, he pointed out that food prices continue to experience inflationary pressures. However, predicting the specific products or price increases affected by the tariffs remains difficult.
The National Retail Federation (NRF), the largest retail trade association in the U.S., estimates that the proposed tariffs could cost American consumers between $46 billion and $78 billion annually in lost spending power. Six product categories—apparel, toys, furniture, household appliances, footwear, and travel goods—would be particularly impacted, according to the NRF.
While some domestic manufacturers might benefit from the tariffs, the NRF argued that the overall losses for consumers would outweigh the gains for U.S. producers and the Treasury. The trade group also warned that low-income families would be disproportionately affected by the increased costs.