Why Walmart decided to say it would raise prices — and risk Trump's fury

Core Viewpoint - Walmart has shifted its stance on the impact of tariffs, indicating that higher import duties will lead to increased prices for consumers, contrasting its previous downplaying of the issue [3][4][6]. Group 1: Walmart's Response to Tariffs - Walmart's CFO stated that the current tariff levels are too high and that the company cannot absorb the magnitude of the increases [3][4]. - The company emphasized its commitment to maintaining low prices but acknowledged that rising costs due to tariffs would necessitate price increases [6][20]. - Walmart's decision to address the potential for higher prices was driven by a sense of obligation to inform customers and investors about the financial realities [6][20]. Group 2: Corporate Engagement and Market Reactions - The corporate response to tariffs has increased significantly, with 139 corporate statements made between April 10 and April 25, compared to 79 prior to that [12][13]. - Other companies, such as Microsoft and Subaru, have also warned of price increases due to tariffs, while Home Depot plans to maintain current pricing levels [8][24]. - Walmart's comments reflect a broader trend among corporations feeling more comfortable speaking out on tariff-related issues, as it directly impacts their business [5][24]. Group 3: Political Dynamics and Market Position - Walmart's relationship with the Trump administration has been complex, as the company has historically contributed to presidential inauguration committees, including $150,000 to Trump's [9][10]. - The company is positioned to withstand political backlash better than many others due to its extensive reach, with 90% of the U.S. population living within 10 miles of a Walmart store [22][23]. - Analysts suggest that Walmart's transparent communication about pricing is aimed at preparing consumers for potential increases while maintaining its reputation for value [20][23].