Walmart to start price increases due to Trump’s tariffs

If I recall a day or two ago a certain poster took the position that tariffs weren't inflationary.

 

Walmart’s net profit margin is 2-3%. So is costcos. Targets is 4%. I wonder what they will do with cost increases? Yep, pass them on to consumers.

 

You mean Xi won't be cutting checks to pay the tariffs? but dear leader said.....

 

#TrumpsAmerica

 

100 days of damage and tariifs have baked in inflation for decades

does anyone honestly think that the car dealers, etc, are going to roll back prices if the tariffs drop

 

Nope. I agree.

 

Are you still talking about Kamala Harris or is this something different?

 

It’s Biden’s fault….

 

MAGA still refuses to believe Powell that inflation is coming. What cognitive dissonance do you have to have in order to reconcile these coming price increases and blind faith to a leader?

 

Why does Trump hate the American people?

 

Seeing rumors of updated tariffs incoming. After his middle Eastern tour, he probably wants all countries giving him gifts etc.
Not sure us common folk will come out ahead.

 

Can you demonstrate that tariffs are inflationary?

If tariffs-associated prices go up then won't the price of other items decline (or not go up as rapidly)

Inflation is everywhere and always a monetary phenomenon (M2). Inflation lags M2 by roughly 14-23 months. Per Milton Friedman, to the best of my recollection

You're welcome

 

Walmart Becomes Biggest Retailer Yet to Pass Through Tariff Price Increases - WSJ

 

What would happen to the overall price of EV's if we dropped the 100% tariff on Chinese EV's?

 

I wonder how many hoarders of cheap Chinese made goods will be effected by Walmart's price increases?

 

They'll likely raise prices, but they probably don't need to. Money grab.

Walmart's former U.S. CEO Bill Simon thinks retailer can easily absorb tariff costs, criticizes its 'doom and gloom' commentary

I own the stock and don't shop there, so I'm conflicted. Record profits will increase stock value.

 

What was last year's net profit rate since you are a stock holder? I'll hang up and listen to your answer.

 

Let's estimate that 30% of Walmart's sales are of stuff made in China. A 30% cost increase on 30% of their goods is 9% cost increase.. and their profit margin is 2.3%.

• With a 9% cost increase their net profit would plumet to a loss of -5% (more than they made the last two years combined) if they didnt raise prices.

Lets estimate only 3% of Walmarts sales are stuff made in China which would be a 1% cost increase

• Heck with a 1% cost increase their net profit would drop by 30%.

They make zero profit all year if China is 15% of their sales and they dont pass on costs.

 

I get you've leveraged your entire GC reputation on tariff increases. I get you're rooting for it. I just posted an opinion from a guy who ran the US portion of the company. Nothing more or less. Guess we'll see. I predict they will raise prices. We won't know how their financial 2025 ended up for another 10 months. I hope Walmart kills it.