Walmart Inc (NYSE:WMT, ETR:WMT) is likely to hike prices if sweeping tariffs proposed by president-elect Donald Trump come into force.
Chief financial officer John David Rainey pointed to the inflationary effects of tariffs on customers in an interview following third-quarter results on Tuesday.
“We never want to raise prices,” he told CNBC, “but there probably will be cases where prices will go up for consumers”.
Trump has previously pledged to impose tariffs of 10% to 20% on all imports, stretching to between 60% and 100% on goods from China.
Around a third of Walmart’s goods are imported, according to Rainey, though the extent of the hit was said to remain uncertain.
Walmart unveiled expectation-beating earnings and upped guidance earlier in the day, aided by sales growth for both food and general merchandise goods.
Bank of America analysts noted this fueled broad-based market share gains and continued profitability, reiterating a ‘buy’ rating.
Shares climbed 3.6% on Tuesday.