Walmart’s stock fell 5% despite reporting better-than-expected earnings in Q1, as the company warned about the impact of Trump’s tariffs. CEO Doug McMillon stated that Walmart has already had to increase some prices and will continue to do so throughout the year due to the “magnitude of the tariffs” and “narrow retail margins.”
The tariffs are affecting not just Chinese imports (estimated at 15% of Walmart’s US sales) but also products from countries like Costa Rica, Peru, and Colombia, including bananas, avocados, coffee, and roses. While Walmart projects 3.5-4.5% sales growth for Q2, it’s not providing specific earnings guidance due to the unpredictable economic environment.