Walmart would think there will be some impact from the tariffs President Donald Trump is trying to impose, especially if something threatened against Canada and Mexico is in place, retailer said Thursday.
The Big-Box giant reported quarterly revenue, indicating slower profit growth. Its stock fell about 6% on Thursday morning amid the wider market decline.
In an interview with CNBC, Chief Financial Officer John David Rainey said that two-thirds of Walmart’s products are sourced from the US, but the company is “completely unimmunized” due to trade obligations. .
“We’ve been living in a customs environment for the past seven or eight years. We do what we know how to do,” he said. “We’re working with our suppliers. We’re leaning towards private brands. We’ll shift supply as needed to take advantage of the low cost that can be handed over to consumers.”
The company did not guide them to that guidance, as Walmart doesn’t know if tariffs will come into effect next month.
Certain companies must pay tariffs upfront if they import good from affected countries, but the company is ultimately forced to decide how to reduce those costs.
Rainey previously told CNBC that it added that consumer prices could rise as a result of tariffs, which is “inflation” for customers.
US companies are increasingly asking questions about how they will be affected by the taxes Trump is seeking. So far, only a supplementary 10% obligation on Chinese products is effective as the President is expected to kick next month, in response to his current trade stance on US steel and aluminum tariffs. It is, but it is in effect. , Trump this week called for new tariffs on cars, drugs, semiconductors and wood imported into the US.
CNBC has discovered that the word “customers” was raised in 2025 in over 190 calls held by S&P 500 companies, and is on track to see the best share of six months. But many said, like Walmart, they haven’t yet considered the impact on official, advanced guidance and outlook.
“We have adopted several scenarios and procedures depending on what actually works,” R. Scott Herren, Chief Financial Officer of Tech Group Cisco, said in a recent comment. It’s there.
This week, the Federal Reserve showed that tariff debate came up during policy meetings, and that it has advanced into calculations to keep interest rates up.
“Many district business contacts indicated that businesses were trying to hand over higher input costs to consumers resulting from potential tariffs,” the central bank reported.
and “Risks of Benefits to Inflation Outlook” “cited the possible impact of potential changes in trade and immigration policies.”
Alex Harring, CNBC contributed.
