LAS VEGAS (KTNV) — If you’ve shopped at your local Walmart lately, you may have noticed a rise in prices. The retail giant has confirmed it’s increasing prices on certain products — and is pointing to tariffs as the reason.
Walmart CEO Doug McMillon recently told investors the company plans to raise prices on some items, citing the 30% tariff on Chinese imports implemented by President Donald Trump. The company says it can no longer absorb the full cost of those tariffs, which are essentially taxes placed on imported goods.
WATCH | What would Walmart raising prices mean for families here in Las Vegas?
Economist Brendan Duke, senior director of federal budget policy at the Center on Budget and Policy Priorities, says Walmart’s slim profit margins leave little room to manage those increased costs.
“Walmart has a 3% profit margin overall, so that’s not a lot of room there,” Duke said.
According to Duke, shoppers should expect price hikes in certain product categories first, particularly clothing and electronics.
“Fortunately, we don’t import a lot of food from China — but we do import a lot of other stuff,” Duke said. “I think the big area I would look for with the 30% China tariffs is clothing.”
He also noted electronics could see noticeable increases, as many devices are assembled in China and are therefore subject to tariffs.
Walmart shoppers in the Las Vegas valley say they’re already noticing a difference.
“I spent $110 on 15 things, and I expect it to go higher, unfortunately, but that’s how things are,” Breana Crawford told me.
“My noodles used to be $5, and now they’re $7,” added shopper Alexis Trujillo. “I almost didn’t get them.”
Duke estimates the current tariffs could cost the average valley family around $2,500 a year, and he warns Walmart likely won’t be the only retailer affected.
“I think we’re going to start seeing prices increase this summer,” he said. “Walmart was the first shoe to drop.”
As prices continue to climb, shoppers say they’re trying to adjust by cutting back or being more strategic with their purchases.
“I’m just going to have to buy less or stretch,” one shopper said.
Duke advises families not to panic or avoid specific stores entirely, but to shop smart, compare prices, and plan ahead to manage the impact on their budgets.
