US Biz
by Julia Pierrepont III, Gao Shan
LOS ANGELES, May 21 (Xinhua) -- As usual, there were crowds of shoppers at the Walmart Super Center in Burbank on Monday, waiting to stock up on supersized food packages and household supplies from America's largest retailer, where prices are usually lower than at smaller stores. Cheerful decorations and piles of alluring merchandise usually put shoppers in an upbeat mood.
But there was an unusual cloud of unease over shoppers at Walmart amid rising distress over U.S. President Donald Trump's scuffle with retailers over tariffs, along with concerns that tariffs imposed on imports to the country would drive up commodity prices and hit American consumers right in the wallet.
It is clear that Walmart's price-sensitive shoppers are about to experience more direct consequences of tariffs.
Mary Duchant, a rehab counselor from North Hollywood, told Xinhua, "Trump doesn't have to worry about prices going up, but ordinary people like me sure do."
"The biggest price increases are still coming," said Hamad H., from Burbank. "Already, I've had to cut back on the amount of food and supplies I can afford for my family. How much worse is it going to get unless wiser heads prevail?"
As the largest U.S. retailer, Walmart has attempted to absorb some of the tariff increases but warned last week that customers may soon feel the effects of the Trump administration's new tariff hikes, with price increases on some items likely to start this month.
"These price hikes are a nightmare for our family," Brenda and Greg S. from Van Nuys told Xinhua, as they pushed a brimming stroller through Walmart's megastore with two of their kids, aged five and seven.
"We've got three kids under the age of eight, and they need new clothes and decent meals. When costs go up so much, are we supposed to tell one of our kids they just have to go hungry this week?" Brenda added, with genuine concern.
"I don't agree with the tariffs, because it affects everybody. I live off my social security, and I can buy less and less every time on everything," a retired man who gave his name as Octavio told Xinhua, noting "everything is so expensive now."
"Who is paying those tariffs? It's you and me," echoed another shopper, Antonio.
Retail margins in general are slim, making it difficult for large chains to fully shield shoppers from the Trump tariffs.
While over two-thirds of Walmart's merchandise is U.S.-sourced, critical product categories like electronics and toys still heavily depend on Chinese imports. In addition, tariffs on imports from Colombia, Costa Rica and Peru are expected to raise prices on items such as coffee, avocados, flowers and healthy produce.
"We have not seen price increases at this magnitude, in the speed in which they're coming at us before, and so it makes for a challenging environment," Walmart CFO John David Rainey said in an interview with CNBC on Thursday.
But Trump sought to counter those warnings, instead blaming retailers and foreign exporters for cost increases.
"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," Trump wrote in a post on Truth Social on Saturday.
Walmart's leadership pushed back subtly, noting that they aim to keep prices low but cannot absorb all the additional costs.
"We have always worked to keep our prices as low as possible, and we won't stop," the company said in a statement to NBC News. "We'll keep prices as low as we can for as long as we can given the reality of small retail margins."
Other retailers such as Target and Home Depot are observing closely. Walmart's actions could set a precedent, as competitors may follow suit in raising prices now that a major player has signaled that it's unavoidable.
For Walmart and others, navigating the Trump administration's unpredictable economic policies while maintaining customer loyalty will prove to be a challenging task -- one that is closely watched by investors, customers and politicians alike.
"These tariffs have got to stop. They hurt everybody, they hurt our economy and don't help America the way Trump claims they do," Jacques P, a Los Angeles resident, told Xinhua. "My bills are skyrocketing. How does that help me? "