At the centre of this move was a growing economic pressure tied to former President Donald Trump’s trade policies. During his second term in office, the administration doubled down on an aggressive tariff campaign—primarily targeting Chinese goods, but also affecting imports from other countries. The policy, which many of his supporters viewed as a bold push for American economic independence, had a different kind of effect on large retailers who rely on global sourcing to keep prices competitive.

By May 2025, the numbers had reached an unsustainable level. Tariffs on certain Chinese imports had climbed as high as 145% before eventually settling around 30%. For a company like Walmart—where margins are famously thin and pricing is carefully calibrated—this wasn’t just a policy shift; it was a fundamental threat to the way it operates. Doug McMillon, Walmart’s CEO, went public with the announcement: prices across key product categories would be going up.

He cited the pressure of import duties and global supply chain stress as unavoidable reasons for the change. John David Rainey, the company’s Chief Financial Officer, echoed the message with a clear warning—consumers should expect to feel the impact at checkout, especially as the back-to-school season approached.