Is Walmart Raising Prices Because of New US Tariffs?
Yes, Walmart is likely to increase prices on some products due to recent US tariff changes. The Biden administration has kept in place—and in some cases expanded—tariffs on Chinese imports, affecting everything from electronics and clothing to home goods and machinery. Since Walmart sources a significant portion of its products from China, these added costs will eventually trickle down to shoppers.
How Tariffs Impact Walmart’s Prices
When the US government imposes tariffs on imports, companies importing those goods have two choices: absorb the extra cost or pass it on to customers. Walmart, known for its low prices, has some room to negotiate with suppliers, but not enough to avoid price hikes entirely.
For example, if a tariff adds 25% to the cost of a Chinese-made television, Walmart might push suppliers to lower their margins, but some of that increase will still show up in the final price. The same goes for items like appliances, bicycles, and even some groceries (like seafood or processed foods with Chinese-sourced ingredients).
What’s Getting More Expensive?
Not every product will see a price jump. Walmart has been shifting some of its supply chains away from China over the past few years, moving production to places like Vietnam, India, and Mexico. But for goods still heavily reliant on Chinese manufacturing, prices will likely rise. Here’s where you might notice it first:
- Electronics (TVs, smart home devices, accessories)
- Home goods (furniture, kitchenware, décor)
- Clothing and footwear (especially budget apparel lines)
- Tools and automotive parts
Is Walmart Closing Stores Because of Tariffs?
So far, no. Walmart is in a stronger position than many retailers because of its massive scale and ability to pressure suppliers. But smaller chains and discount stores—especially those that depend heavily on cheap imports—are feeling the squeeze. Family Dollar, for example, is closing hundreds of stores due to rising costs and weak sales. Rite Aid has also continued shrinking after its bankruptcy.
Walmart isn’t at risk of shutting down locations, but it might slow down expansion or cut back on promotions to keep profits steady. The bigger concern is whether consumers, already dealing with inflation in other areas, will pull back on spending if Walmart’s prices creep up too much.
If you’ve noticed some Walmart prices inching higher, tariffs are part of the reason. The good news is that Walmart will still compete hard on price, so increases may be gradual. The bad news? If tariffs stay in place or expand, more everyday items could get pricier over time.
While Walmart can absorb some tariff costs, smaller retailers aren’t so lucky. Family Dollar is closing 600+ stores this year, partly due to rising import expenses. Rite Aid, still recovering from bankruptcy, continues shutting down underperforming locations. Even Foot Locker plans to close hundreds of stores by 2026 as tariffs and weak sales take a toll.
The Bottom Line
Tariffs are reshaping retail—Walmart can handle the hit for now, but price increases are inevitable on China-dependent goods. Meanwhile, weaker chains like Family Dollar and Rite Aid are being pushed to the brink. For shoppers, this means more selective deals and fewer discount options in some areas. The real test will come if consumer spending slows, forcing even big players to make tougher choices. One thing’s clear: in today’s trade environment, no retailer is completely immune.