Walmart Chief Financial Officer John David Rainey warned that President-elect Trump's proposed tariffs could lead to higher prices for Walmart shoppers.
“Tariffs are going to cause inflation, there's no disputing that,” Rainey said in an interview with Liz Claman on Thursday's “The Claman Countdown.”
“Consumers will likely end up paying more for items that they pay for and are subject to these tariffs.”
Under the proposal, a flat 10% to 20% tariff would be imposed on all foreign imports, and an additional 60% to 100% tariff would be imposed on imports from China in particular.
Rainey said that while two-thirds of the products the company sells are manufactured, grown and assembled in the United States, “we are not immune to this.”
The company has suppliers all over the world, including China and other Asian countries.
“We will continue to work with our suppliers and our private label assortment to lower prices for our customers,” Rainey said.
A Walmart spokesperson said in a statement to FOX Business that the company “remains concerned that a significant increase in tariffs could result in increased costs for our customers as we continue to feel the lingering effects of inflation.” .
Rainey said there is still some inflation in food prices, although there is deflation in categories such as consumables and general merchandise. He said it is very difficult to predict which products will be affected and to what extent.
The National Retail Federation (NRF), the nation's largest retail trade association, recently found that President Trump's proposed new tariffs could cost American consumers between $46 billion and $78 billion a year in purchasing power. It was estimated that
NRF also said six categories of goods will be affected, including clothing, toys, furniture, home appliances, footwear and travel goods.
The trade group said some U.S. manufacturers may benefit from the tariffs, but the gains for U.S. producers and the Treasury will not outweigh the losses for consumers overall.
The group said low-income households would be hit particularly hard.
