Walmart warns of price hikes due to tariffs amid mixed economic signals

Walmart warns consumers to prepare for price increases driven by tariffs, particularly on food, coinciding with the critical back-to-school shopping period. CEO Doug McMillon stated that the company will work to keep prices low but cannot absorb the financial impact of the tariffs. This announcement arrives amidst significant layoffs from major employers in the Puget Sound area, with Microsoft cutting over 1,800 jobs and Starbucks reducing its corporate workforce. In contrast, the Bureau of Labor Statistics revealed that the U. S.

economy added 177,000 jobs in April, a minor decline from March's 185,000 job gains. Inflation has also decreased to 2. 3%, marking the lowest annual rate in more than four years. Federal Reserve Chair Jerome Powell cautioned that these trends may signal a pause rather than a resolution, with potential supply shocks on the horizon. The mixed economic signals present a complex picture for consumers and retailers alike.

Walmart's price warnings and the recent layoffs emphasize the ongoing challenges in the economy.