Discount giant Walmart on Wednesday vowed to keep prices low in order to increase market share despite President Trump’s tariffs on global trading partners – especially China.
The retailer argued that it is particularly well-equipped for the challenge in the face of a 125% tariff on China – even though Walmart imports 60% of its goods from the Mainland.
“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” Walmart CFO John David Rainey said in a press release after the company announced it will stick to its full-year sales and income growth forecasts.
Shares soared nearly 10%.
The Arkansas-based company hopes to use its image as an affordable alternative to dominate the retail space, while more expensive rivals may struggle to hold onto customers amid tariff-related costs.
That tactic has worked for Walmart in the past. It has outperformed rivals during other economic crises, like the COVID-19 pandemic and the 2008 recession, due to its ultra-low prices.
Last May, as cash-strapped customers cut back on shopping due to sticky inflation, Walmart’s sales jumped – with the bulk of the gains coming from wealthy households earning $100,000 or more.
“We’ve learned how to manage through turbulent periods,” Walmart CEO Doug McMillion said in comments addressed to a group of investors, analysts and reporters, before Trump announced a 90-day pause of his reciprocal tariffs on all trading partners except China.
“And while we don’t know everything that is going to happen…We do know what our priorities are, and we know what our purpose is, and we’ll be focused on keeping prices as low as we can.”
China was facing a 104% tariff when McMillon made his comments – but Trump upped the levy to 125% because of an 84% retaliatory tax imposed on US goods by Beijing that begins Thursday.
The company acknowledged it would face difficulties, saying “the range of outcomes” for first-quarter operating income growth has widened, due partially to the desire to “invest in price as tariffs are implemented.”
In February, Walmart had forecast full-year sales for the fiscal year ending January 2026 to jump between 3% and 4%, and annual adjusted operating income to rise between 3.5% and 5.5%.
At the time, it projected first-quarter adjusted operating income to rise between 0.5% to 0.2%. Walmart did not provide updated figures during the investor meeting.
In a statement, McMillon said Walmart is strategizing to serve customers “even better” on low prices, a broad assortment of goods, a convenient and enjoyable shopping experience and a trustworthy business.
Behind the scenes, Walmart has reportedly continued to pressure Chinese suppliers to slash their prices – in effect, bearing the brunt of Trump’s tariffs – even after the retailer’s executives got a dressing down from Beijing, according to Bloomberg.
The world’s largest retailer is still pushing overseas suppliers to cut their prices by as much as 10%
A spokesperson for the retailer told Bloomberg that the company’s conversations with suppliers are all aimed at delivering lower prices to customers.
The Post reached out to Walmart for comment.
