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SHOCKING NEWS: Walmart Sounds Alarm! Prices Set to SKYROCKET Despite Tariff Deal!
In a jaw-dropping revelation, Walmart has delivered a chilling warning to its customers: brace yourselves for HIGHER prices! Yes, you heard it right! This comes in the wake of a NEW deal between the US and China to SLASH punishing tariffs.
Walmart, the GIGANTIC retail powerhouse, finds itself in a nail-biting position, heavily affected by the trade war ignited by none other than President Donald Trump. With China and Mexico as its primary import sources, a staggering ONE-THIRD of Walmart’s merchandise comes from overseas.
This week, Washington and Beijing decided to ease the pain of tariffs for a 90-day window, slashing the hellish rates on Chinese imports from a monstrous 145% down to about 40%. But wait! Walmart’s CEO, Doug McMillon, is NOT convinced this is enough to keep your wallets safe!
"We will do our best to keep our prices as low as possible, but the reality of these tariffs is a harsh one," McMillon exclaimed. The stakes couldn’t be higher! Despite the temporary relief, the retailer is left helpless against soaring prices due to slim retail margins.
Let’s not forget! The first quarter of this year has been a rollercoaster for the US economy, with tariffs being slapped on trading partners quicker than you can say “trade war!” The looming shadows of 145% tariffs on China cast a pall over the market since April 9th.
In an urgent plea at the White House, McMillon joined industry titans to warn against the perils of tariffs, foreshadowing EMPTY shelves and soaring prices. And guess what? Just as predicted, he sounded the alarm again on Thursday!
But here’s the twist! Walmart proudly announced a SURGE of 4.5% in annual sales at its US outlets—smashing the Wall Street forecast of 3.7%! Yet, they are holding back on profit guidance for the next quarter due to the chaotic trade landscape. Meanwhile, shares lifted a modest 2.14% in pre-market trading.
Walmart is striking first among the major retailers reporting earnings since Trump’s explosive April announcements. But hold your horses! Stay tuned as the likes of Target and Home Depot prepare to drop their bombshells next week!
In a surprising move, Amazon has also warned of potential earnings risks tied to trade policies, but there are no signs (yet!) of waning demand on its platform.
And here’s a major revelation: Walmart’s eCommerce sector—yes, the battle against online retail—is profitable BOTH in the US and globally for the FIRST TIME! E-commerce sales have skyrocketed by 22% year-on-year this quarter, proving that Walmart is not backing down!
As trade war jitters sweep the nation, panic-driven shoppers rushed to buy goods before prices skyrocket! This could totally distort the consumer demand landscape!
Walmart’s quarterly revenue touched a colossal $165.6 billion, a rise of 2.5% from last year, but it just missed the $166 billion forecast. However, net income tumbled by 12.6% to $4.6 billion, still edging past estimates.
Get ready, folks! This drama is FAR from over! Keep your eyes glued on the price tags as Walmart plays its next moves in this intense trade saga!
photo credit: www.ft.com
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