Inflation lives, as Walmart to raise prices: Throughout the month of April, as President Trump first announced tariffs on most of the world’s countries and then later pulled back, it led to a great deal of stock market volatility, as well as bad polling numbers for Trump on the issue of the economy.
More recently, after the announcement of the 90-day pause on most tariffs, and the agreements with the U.K. and an interim one with China, there’s an impression that things have stabilized a bit, with numbers rising for both the stock market and Trump’s popularity ratings. There are even whispers that recession fears are abating a bit.
Trump Tariff War Means Walmart Must Raise Prices
However, there’s one big indication this week that the chaos is far from over- and that the days of inflation aren’t exactly over. And not only because the tariff pause and China deal are both temporary, and may not lead to any type of long-term deal.
Not Always Low Prices
Walmart once used the slogan “Always Low Prices- Always,” and the chain has often used low prices as a selling point. But this week, the retail giant’s chief financial officer said in a Wall Street Journal interview that Walmart will be raising prices, and named tariffs as the reason why.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told the Journal.
“We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon.
Walmart, like Amazon, sells a large amount of products that are made in China, which is part of why the prices are so low.
Amazon, in late April, had floated the possibility of listing what percentage of each price was due to tariffs, but dropped the idea almost immediately, reportedly after Trump made a direct call to his enemy-turned-ally Jeff Bezos, the company’s founder.
“Jeff Bezos was very nice. He was terrific,” Trump told reporters of the Amazon founder, who is no longer the company’s CEO but remains its largest shareholder. “He solved the problem very quickly. Good guy.”
The Inflation Question
Trump came to power, in large part, due to stubborn inflation, which was noticed by most Americans.
Since Trump came to power, the inflation picture has been somewhat mixed. Gas prices have gone down, with the price of eggs down from its spike last year.
However, per CNBC, the index of consumer sentiment dropped to 50.8, down from 52.2 a month earlier. That was, however, based mostly on surveys taken by the University of Michigan before the announcement of the U.S./China deal for a pause.
“The outlook for price changes also moved in the wrong direction,” CNBC said. “Year-ahead inflation expectations rose to 7.3 percent from 6.5 percent last month, while long-term inflation expectations ticked up to 4.6 percent from 4.4 percent.”
Powell Speaks
Fed Chairman Jerome Powell has been reluctant to cut interest rates, due to inflation fears, which has led Trump to rip him on more than one occasion, and even imply that he would like to remove Powell, something the president is not believed to have the power to do.
Powell, who was appointed during Trump’s first term, has said more than once that he would not resign before his term expires.
While inflation slowed in March, Powell warned this week of continuing volatility.
“We may be entering a period of more frequent, and potentially more persistent, supply shocks — a difficult challenge for the economy and for central banks,” Powell said in public comments, as reported by CNN.
“Inflation could be more volatile going forward than in the inter-crisis period of the 2010s,” Powell added.
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter
