The ripple of President Donald Trump’s total tariffs began to appear on shelves in big stores such as Target and Walmart.
On Reddit’s R/Walmart Subreddit, posters that they say they are employees of Walmart began reporting a big rise.
In fact, from grocery nails to toys and outdoor gear, Subreddit has become an example. One post points to an 8-ounce cocoa powder, which grew nearly 80% from $3.44 to $6.18. As Business Insider discovered, Jurassic World T-Rex toys have recently jumped from $39.95 to $55 (a 38% rate hike), while the fishing reel that once sold for $57.37 is now available for $83.26. According to Business Insider, the same product is priced similarly on Target.
While anecdote, these Reddit posts suggest that tariff prices rise Walmart warned that it may have arrived.
Mixable light speed
Walmart CEO Doug McMillon warned customers on a revenue call in May that the company may not be able to avoid longer price increases. As the street reports, Macmillan acknowledged that the company could not “absorb all the pressure” given the reality of narrow retail margins. Also in May, Walmart Chief Financial Officer John David Rainey warned consumers that Trump’s tariff policies could impact prices in the coming weeks, meaning these increases are correct.
“We’re low prices every day, but these increases are more than any retailer can absorb,” Rainey told CNBC. “It absorbs more than any supplier.”
Trump did not show kindness to the statements. In truth social, he shot backwards, saying that Walmart should just “eat tariffs.”
It is unclear how long the Trump administration’s new tariffs will last. The Federal Trade Court ruled last Thursday that Trump lacked the constitutional power to enforce his broad tariff regime. The decision is currently being suspended, meaning that tariffs remain at present.
According to a 2023 Reuters report, 60% of Walmart’s products come from China between January and April of that year. Since then, the company has begun moving part of its supply chain to India to diversify it.
