Is Walmart raising prices because of tariffs?
That seems to be the case, but just how much will the increase in prices at Walmart (NYSE:WMT) affect customers? WMT already notes that the higher prices are coming. However, it will try and avoid them when at all possible.
This means that Walmart will be making some changes to its business in an effort to stop prices from increasing. Among these changes are it getting goods from other countries than China. The company may also strike up deals with suppliers to try and reduce the price increase.
“We believe Walmart has the wherewithal both financially and via its vendor relationships to minimize the impact on both itself and its shopping base,” Charlie O’Shea, an analyst at Moody’s, told Reuters.
So we’ve answered the question about Walmart raising prices because of tariffs, but what exactly is sparking this? The fuel behind these higher prices is the ongoing trade war between the U.S. and China. President Donald Trump increased tariffs on $200 billion worth of Chinese imports. This has the new tariffs on these goods sitting at 25%. The old tariffs were 10%.
Walmart also just released its earnings report for the first quarter of 2019. The company’s earnings were mixed, with it beating EPS estimates, but missing on revenue. You can follow this link to see more details about its most recent earnings report.
WMT stock was up 2% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
