Walmart and Lowe’s warn Trump tariffs could cause prices to rise

Huge tariffs Donald Trump The promised implementation will likely lead to higher prices at major U.S. retailers such as Walmart and Lowe’s, the companies’ chief financial officers said this week.

Walmart CFO John David Rainey told CNBC It is not yet clear which elements will be affected.

“We never want to raise prices,” Rainey said Tuesday. “Our model is everyday low prices. But there will likely be cases where prices for consumers will increase.”

The company confirmed Rainey’s views in a statement. relayed to Reuters: “We are concerned that significant tariff increases could result in higher costs for our customers at a time when they are still feeling the lingering effects of inflation.”

“Approximately 40% of the value of the merchandise we sell comes from outside the U.S., and that includes both direct imports and national brands through our supplier partners,” Sink said during the call, according to Yahoo. “And if we look at the potential impact, it will certainly increase the cost of the product, but the timing and details remain uncertain at this time.”

During the campaign, Trump repeatedly promised that he would curb American household spending by imposing tariffs, even though they typically make goods more expensive. He proposed imposing a tariff of up to 20% on all goods made in other countries and a special tariff of 60% on goods made in China.

Trump imposed tariffs using executive authority in his first termalthough his new proposal is much more radical.

Electronics, toys and clothing are especially sensitive to tariff-related price increases. according to ABC Newsgiven that these products are often dependent on imports.