Walmart warns about potential price hikes amid Trump tariffs

​​​​​​ISTANBUL

Walmart warned Thursday that prices may rise in the coming weeks because of increased import costs driven by tariffs imposed under the Trump administration.

“We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs … we aren’t able to absorb all the pressure,” CEO Doug McMillon said during an earnings call.

While McMillon welcomed the administration’s recent decision to suspend plans for more aggressive levies, he said the world’s largest retailer still expects to raise prices to offset higher costs.

About one-third of Walmart’s US inventory is made, grown or assembled domestically, but the company heavily relies on goods imported from China, Mexico, Vietnam, India and Canada, said McMillon.

Walmart’s pricing strategy is seen as a bellwether for the broader retail industry.

The US and China reached a deal last weekend after negotiations in Geneva to significantly reduce duties on each other’s goods. As part of the agreement, the US will lower tariffs on Chinese products from 145% to 30%, while China will reduce its tariffs on US goods from 125% to 10% starting May 14.