Despite a strong first quarter of 2025 and a 20% jump in e-commerce sales in the U.S., Walmart claims that it will soon need to start raising prices due to tariffs from the Trump administration.

The New York Times reports that the retail giant saw its sales at U.S. store rise by 3% in Q1, while it's e-commerce business saw its first ever profitable quarter. Walmart also beat its quarterly earnings expectations, and still expects its net sales to grow by as much as 4.5% in the second quarter of 2025. Speaking to CNBC on May 15, chief financial officer John David Rainey also noted that the company hasn't seen a notable shift in consumer behaviors, even as President Trump's tariffs have roiled global economies.

Nevertheless, Rainey said, Walmart customers should expect to see higher prices as a result of current tariff levels by the end of May, and then "much more in June."

“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” he asserted.

Less than a week after Trump announced his "Liberation Day" tariffs in early April, Walmart CEO Doug McMillon stressed to investors that Walmart was uniquely prepared to head off impacts from the levies, given that two-thirds of the company's products sold in the U.S. are sourced domestically. The retailer has also been buoyed by growing profits from its subscription-based membership program Walmart+, as well as its U.S. advertising business Walmart Connect, which reported a 31% year-over-year increase in sales for Q1 of 2025. 

If Walmart does move forward with price increases, analysts tell The New York Times that discretionary items like electronics and toys — many of which are sourced from China — will likely be first on the list, although consumer behaviors around specific products will also factor into pricing decisions.