One Of CA's Largest Retailers To Raise Prices: What To Expect

LOS ANGELES, CA — In a sign that President Donald Trump's tariffs are soon to hit Golden State shoppers in the wallet, the world's largest retailer on Thursday announced plans to increase prices within weeks.

Walmart executives warned Thursday that $750 billion company will start raising prices in response to tariffs.

Walmart is a major player in California with 303 Walmart stores, 144 Walmart Supercenters, 65 Neighborhood Markets and 30 Sam's Club locations. Walmart is considered a bellwether for the health of U.S. consumers, having lowered prices during the pandemic and the 2008 recession, The Washington Post reported.

“We’re positioned to manage the cost pressure from tariffs as well or better than anyone, but even at the reduced levels, the higher tariffs will result in higher prices,” Walmart chief executive Doug McMillon said Thursday during a quarterly call with analysts, The Washington Post reported.

Executives told industry analysts Thursday that they're doing everything in their power to absorb the higher costs from tariffs ordered by Trump.

Given the magnitude of the duties, however, the highest since the 1930s, higher prices are unavoidable, and they will hurt Walmart customers already buffeted by inflation over the past three years.

Those higher prices began to appear on Walmart shelves in late April and accelerated this month, Walmart executives said Thursday. However, a larger sting will start to be felt in June and July when the back-to-school shopping season goes into high gear.

“We're wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” Chief Financial Officer John David Rainey told The Associated Press on Thursday after the company reported strong first-quarter sales.

Rainey emphasized that prices are rising not just for discretionary items such as patio furniture and trendy fashions, but for basic necessities as well. The price of bananas, imported from Costa Rica, rose from 50 cents per pound, to 54 cents. He thinks car seats made in China that currently sell for $350 at Walmart will likely cost customers another $100. Baby strollers are also sourced from China, Rainey said.

Higher prices arrive as many Americans pull back on spending as they grow increasingly uneasy about the economy. A slew of companies including toy manufacturer Mattel, toolmaker Stanley Black & Decker and consumer products giant Procter & Gamble have announced higher prices or plans to raise prices.

But Walmart's moves are even more significant given its outsized power in the retailing landscape. Walmart says that 90% of American households rely on the retailer for a range of products, and more than 150 million customers shop on its website or in its stores every week. Analysts will dissect the earnings reports from other retailers including Target and Home Depot, set to be released next week.

It may be the largest, but it's not the only major American company to portend price increases due to the president's tariffs.

Last month, the White House lashed out at Amazon, labeling the company's reported plans to display items' tariff cost a “hostile and political act.” Amazon announced it would not display tariff costs after Trump called Amazon founder Jeff Bezos to object, CNN reported. The move would have put the tariffs' cost to consumers on stark display.

Trump had announced a 145 percent tariff on imports from China and at least a 10 percent tariff on all other countries. This week, the United States and China agreed to a 90-day pause on tariff increases, leaving a 30 percent tariff on Chinese imports over the next three months.

"Even as the biggest tariffs were paused, we still should brace for the effects of tariffs following 11 straight months of cargo growth," warned Long Beach Harbor Commission President Bonnie Lowenthal.

The pause comes after shipments to California's largest ports fell dramatically.

Officials with the Port of Los Angeles and the Port of Long Beach began sounding the alarm last week.

Port officials said no ship left China for the West Coast for 12 hours on Friday — down from 41 ships a week earlier.

“That’s cause for alarm,” said Mario Cordero, the CEO of the Port of Long Beach told CNN. “We are now seeing numbers in excess of what we witnessed in the pandemic” in terms of cancellations and fewer shipments.

Supply chain and shipping backlogs due to the pandemic were major contributing factors in the inflation spike of 2022.

"After moving the most containerized cargo of any American port in the first quarter of 2025, we are now anticipating a more-than 10% drop-off in imports in May -- and the effects will be felt beyond the docks," Port of Long Beach CEO Mario Cordero added in a statement Thursday. "Soon, consumers could find fewer choices and higher prices on store shelves, and the job market could see impacts given the continuing uncertainty."

City News Service and The Associated Press contributed to this report.