Walmart's CFO John David Rainey warned that proposed tariffs by President-elect Trump might lead to higher prices for shoppers.
"Tariffs are going to be inflationary. There's no disputing that," Rainey told Liz Claman on "The Claman Countdown." He added, "Likely consumers are going to pay more for the items that they pay and that these tariffs are applied to."
The proposed plan includes a universal 10%-20% tariff on imports from all countries. Imports from China would face an additional 60%-100% tariff.
Rainey explained that while most Walmart items are made, grown, or assembled in the U.S., the company isn’t immune. "We’re going to work with our suppliers as well as our own private brand assortment to continue to try to bring down prices for customers," he said.
Watch the latest video at foxbusiness.comWalmart sources products from around the world, including China and other Asian countries. A spokesperson emphasized the company's concern that increased tariffs could drive costs higher for customers still feeling inflation’s effects.
Rainey noted there’s lingering inflation in food prices, though categories like consumables and general merchandise have seen deflation. He admitted it’s hard to predict which products would be affected and by how much.
The National Retail Federation estimated the new tariffs could cost American consumers $46 billion to $78 billion annually. Key categories such as apparel, toys, furniture, and footwear would face higher costs.
While some U.S. manufacturers might gain, the NRF believes those benefits wouldn’t outweigh the burden on consumers. They warned that low-income families would feel the impact most severely.