Is the Domino Effect of Price Increases Due to Trump Tariffs Starting?

Price increases due to Trump tariffs have begun in the United States.

According to the Wall Street Journal (WSJ) and CNBC on the 15th (local time), Walmart announced plans to raise prices on goods affected by tariffs this month and early this summer.

John David Rainey, Walmart's Chief Financial Officer (CFO), said in an interview with CNBC that tariffs are "still too high" and "American consumers are likely to see Walmart's price increases later this month or next month."

He added, "We will do our best to keep prices as low as possible, but given the intensity of the tariffs, even at the level of the (China-related) tariff reduction announced this week (145%→30%), we cannot absorb all the (price increase) pressure factors considering the reality of low retail margins." He also noted, "The scale and speed at which these prices are approaching us are unprecedented in history."

If Walmart raises prices, other retailers are likely to follow suit. This can only lead to an increase in consumer burden.

Major U.S. retailers such as Target, Lowe's, and Home Depot are scheduled to announce their performance and financial outlook next week. Major companies have also announced plans for price increases. Ford Motor Company, one of the Big Three U.S. automakers, recently informed U.S. dealers that it will raise prices on three models produced in Mexico.

Hermès, a French luxury company famous for its Birkin bags, announced last month that it plans to raise product prices in the United States. German sandal company Birkenstock also said it would raise prices not only in the U.S. but worldwide to avoid cost burdens due to U.S. tariffs.

Song-ryeol Lee, Hankyung.com Reporter yisr0203@hankyung.com