Walmart will likely raise some prices if Trump tariffs take effect, CFO says

Walmart's CFO John David Rainey said the retailer would apt person to rise prices connected immoderate items if President-elect Donald Trump's projected tariffs instrumentality effect.

"We ne'er privation to rise prices," helium said successful an interrogation with CNBC connected Tuesday. "Our exemplary is mundane debased prices. But determination astir apt volition beryllium cases wherever prices volition spell up for consumers."

Rainey added that it's excessively soon to accidental which products could outgo much owed to the tariffs.

Walmart's CFO weighed successful connected the imaginable argumentation change as the institution beat Wall Street's net and income expectations and hiked its full-year forecast.

Walmart's comments are the latest warning from U.S. retail leaders astir the imaginable blowback from from the duties. During Trump's statesmanlike campaign, helium said helium would enforce a 10% to 20% tariff connected each imports, including levies arsenic precocious arsenic 60% to 100% for goods from China.

In a connection earlier this month, National Retail Federation CEO Matthew Shay described across-the-board tariffs arsenic "a taxation connected American families." He said it "will thrust ostentation and terms increases and volition effect successful occupation losses."

The imaginable of accrued prices comes arsenic ostentation has moderated successful the U.S., aft years of stretching consumers' wallets.

Other retailers and brands person besides spoken retired astir the imaginable drawbacks of the tariffs. E.l.f. Beauty CEO Tarang Amin told CNBC successful an interrogation earlier this period that the institution could beryllium forced to rise prices if the higher duties instrumentality effect. Footwear shaper Steve Madden said it will reduce the goods it imports from China by arsenic overmuch arsenic 45% implicit the adjacent twelvemonth to effort to debar the fiscal impact.

The bulk of goods Walmart sells are not astatine hazard of tariffs. Rainey said astir two-thirds of the items that Walmart sells are made, grown oregon assembled successful the U.S.

Like different companies, Walmart has tried to import from antithetic parts of the satellite alternatively than trust heavy connected China oregon immoderate 1 country, helium said. Rainey added that levies placed during Trump's archetypal medication already caused the institution to adjust.

"We've been surviving nether a tariff situation for 7 years, truthful we're beauteous acquainted with that," helium said. "Tariffs, though, are inflationary for customers, truthful we privation to enactment with suppliers and with our ain backstage marque assortment to effort to bring down prices."

Like Walmart, Lowe's said it's besides made moves to diversify its proviso chain. The location betterment retailer addressed the imaginable levies arsenic it reported earnings connected Tuesday.

CFO Brandon Sink said astir 40% of the company's outgo of goods sold comes from extracurricular of the U.S., including nonstop imports and merchandise from nationalist brands. He said tariffs "certainly would adhd merchandise costs," but added "timing and details stay uncertain astatine this point."

"We judge we're good prepared to respond erstwhile and if it does happen," helium said.

— CNBC's Gabrielle Fonrouge contributed to this report.