The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Business

Walmart says it’s ‘not going to be completely immune’ from Trump’s tariffs

by February 20, 2025
February 20, 2025
Walmart says it’s ‘not going to be completely immune’ from Trump’s tariffs

Walmart would likely see some impact from tariffs President Donald Trump is seeking to impose, especially if ones threatened against Canada and Mexico are implemented, the retailer said Thursday.

The big-box giant reported quarterly earnings and also signaled slowing profit growth. Its shares fell about 6% amid a broader market decline Thursday morning.

In an interview with CNBC, Chief Financial Officer John David Rainey said that while some two-thirds of Walmart’s products are sourced from the U.S., the company was “not going to be completely immune” from trade duties.

“We’ve lived in a tariff environment for the last seven or eight years, and we’ll do what we know how to do,” he said. “We’ll work with suppliers. We’ll lean into our private brand. We’ll shift supply where necessary to try to take advantage of lower costs that we can then pass on to consumers.”

Since Walmart is not sure if the tariffs will take effect next month, the company did not factor them into its guidance, Rainey said.

While a given company must pay a tariff up front if it imports a good from an affected country, the firm is ultimately forced to decide how to mitigate on those costs — and they often get passed down to shoppers.

Rainey previously told CNBC that there would likely be cases where prices for consumers would increase as a result of tariffs, adding that they are ‘inflationary’ for customers.

U.S. companies are seeing mounting queries about how they would be impacted by the levies Trump has called for. So far, only a supplemental 10% duty on Chinese goods has gone into effect, though the president has threatened a vast new array of tariffs depending on a given country’s current trade posture with the U.S. Steel and aluminum tariffs are set to kick in next month, while Trump this week called for new tariffs on automobiles, drugs, semiconductors and lumber imported to the U.S.

CNBC has found the word ‘tariffs’ has come up on more than 190 calls held by S&P 500 companies in 2025, putting it on track to see the highest share in half a decade. However, many, like Walmart, stated they were not yet figuring the effect of them into their official forward guidance and outlooks.

“We’ve game-planned out several scenarios and steps we could take depending on what actually goes into effect,” R. Scott Herren, the chief financial officer at the tech group Cisco, said in recent comments.

This week, the Federal Reserve indicated that discussion of tariffs had come up during its policy meetings, and had gone into its calculation for keeping interest rates elevated.

‘Business contacts in a number of Districts had indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs,’ the central bank reported — something that could threaten to accelerate inflation.

And in its “upside risks to the inflation outlook,’ it cited ‘the possible effects of potential changes in trade and immigration policy.“

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
JetBlue talking to ‘multiple airlines’ about a new partnership
next post
Train hits elephant herd in Sri Lanka, killing at least six elephants, say police

You may also like

Coca-Cola takes on Olipop and Poppi with new...

Musk says he’s sending Starlink tech to FAA...

Walmart managers can now earn $400,000 a year,...

Kia recalling 427,000 Telluride SUVs because they might...

65-year-old quit his job and emptied his life...

NFL hit with $4.8 billion in damages over...

IRS has collected more than $520M in back...

Disney says about 157 million global users are...

Retailers scramble to move billions in cargo as...

Charlie Munger, investing genius and Warren Buffett’s right-hand...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Sycamore Gap: Two men convicted of felling one of UK’s most famous...

    • Putin, Xi and friendly world leaders celebrate Russia’s Victory Day at Moscow Parade

    • Ellen Miles is planting seeds of hope through guerrilla gardening

    • US Policy Momentum, Clinical Progress Fueling Psychedelics Market in 2025

    • China has spent billions developing military tech. Conflict between India and Pakistan could be its first major test

    Categories

    • Business (1,633)
    • Investing (4,791)
    • Politics (7,535)
    • World (6,128)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top