The effects of President Donald Trump’s significant tariffs are becoming clear in major retail outlets such as Target and Walmart. On the r/Walmart subreddit on Reddit, users who claim to be employees of Walmart have reported visible increases in prices. The subreddit has evolved into a repository of examples, including items ranging from groceries to toys and outdoor gear. One entry points out an 8-ounce jar of cocoa powder that surged from $3.44 to $6.18, an increase of nearly 80 percent. Business Insider noted that a Jurassic World T-Rex toy recently rose from $39.95 to $55, marking a 38 percent increase, while a fishing reel that was priced at $57.37 is now $83.26. Target has seen similar price increases, as per Business Insider’s report.
These Reddit findings, while anecdotal, suggest that the price surges related to tariffs that Walmart previously warned about may have manifested. During a May earnings call, Walmart’s CEO Doug McMillon alerted customers that the company might soon be unable to prevent price increases. According to The Street, McMillon acknowledged that the company couldn’t “absorb all the pressure given the reality of narrow retail margins.” In May, Walmart’s CFO John David Rainey also indicated that Trump’s tariff policy could influence prices “within the coming weeks,” implying that these increases are immediate.
“We’re set up for everyday low prices, but the scale of these hikes is more than any retailer can manage,” Rainey told CNBC. “It’s more than any supplier can handle.”
Trump reacted negatively to these comments. On Truth Social, he proposed that Walmart should simply “eat the tariffs.”
The length of the Trump administration’s new tariffs remains unclear. A federal trade court decided last Thursday that Trump did not possess the constitutional power to enact his extensive tariff framework. That ruling is currently stayed pending an appeal, so the tariffs remain applicable for the time being.
As reported by Reuters in 2023, 60 percent of Walmart’s products were sourced from China between January and April of that year. Since then, the company has begun relocating parts of its supply chain to India for diversification purposes.