Walmart, the largest retailer in the U.S., is maintaining its full-year sales and operating income forecast despite the economic uncertainty caused by President Donald Trump’s ongoing tariff disputes with China and other trade partners.
The company, based in Bentonville, Arkansas, stated on Wednesday that it still expects sales growth of 3% to 4% in the first quarter. However, it withdrew its previous projection for first-quarter operating profit growth, which was expected to be between 0.5% and 2%, due to the risks associated with tariffs. Walmart did not provide a revised forecast for operating profit.
In its statement, Walmart explained that the potential outcomes had become less predictable because of an unfavorable product mix and the need to remain flexible in adjusting prices as tariffs are implemented.
This announcement came on the same day Walmart hosted an investor conference in Dallas, featuring key company leaders. It also coincided with the escalation of trade wars under Trump, which have heightened fears of a recession and caused panic in financial markets. On Wednesday, Trump’s new tariffs went into effect, increasing import taxes on goods from several countries.
In retaliation, China raised tariffs on American goods to 84%, matching the 50% tariff Trump imposed, while also adding more countermeasures.
Walmart has some protection against the tariff impact, as about two-thirds of its merchandise is sourced within the U.S., with groceries making up a significant portion of that. Groceries account for roughly 60% of Walmart’s business in the U.S. However, the new tariffs present challenges, especially since they carry more economic risks than during Trump’s first term. Price increases resulting from these tariffs could negatively affect Walmart’s lower- and middle-income customers, who have already been cutting back due to high inflation on essential goods.
