"Low prices is what we stand for, and we're going to keep prices as low as we can as long as we can," Walmart CFO John David Rainey said on Yahoo Finance's Catalysts. "But when you look at the magnitude of some of the cost increases on certain categories of items that are imported, it's more than what retailers can bear. It's more than what suppliers can bear."
"And so we'll work hard to try to keep prices low. But it's unavoidable that you're going to see some prices go up on certain items."
Rainey added, "Well, if you've got a 30% tariff on something, you're likely going to see double digits [in price increases]."
Speaker A:
And when you think about these price increases, do you think you might disperse them across the board to items that maybe aren't as negatively impacted by tariffs and import costs to lessen the impact of price increases that you may have to do because of tariffs on something like technology.
John David Rainey:
Practically speaking, that's what all retailers will have to do. If you go back to what was proposed in early April, that's more money than likely the entire retail industry made last year. It can't be fully absorbed by retailers. It also can't be absorbed by suppliers.