Walmart blames tariffs for potential price hikes

Bentonville, Ark.-based Walmart says the Trump administration’s most recent tariff stunt will be to blame if the company has to raise prices on its products.

According to CNN, although a majority of the company’s sales come from its grocery department, it still imports approximately 26% of its merchandise from China.

"We're going to continue to do everything we can to keep prices low. That's who we are. However, increased tariffs will lead to increased prices, we believe, for our customers." Walmart Chief Financial Officer Brett Biggs told reporters on a call after the retailer reported earnings for the first quarter of 2019.

China’s new tariffs, which would take effect June 1, would impact $60 billion in U.S. imports and would range from 5% to 25%. The thousands of products include peanuts, sugar, wheat, chicken and turkey.

Hun Quach, vice president of international trade at the Arlington-based Retail Industry Leaders Association, compared tariffs to taxes.

“Raising tariffs means raising taxes on millions of American families and inviting further retaliation on American farmers, which jeopardizes domestic jobs,” Quach said. “We want President Trump to successfully reach a deal with China that puts a check on anti-competitive behavior. But a deal that increases tariffs on everyday goods will be a loser for middle-class families.”