Walmart Price Hikes Coming – How New Tariffs Could Impact You
Tariff talk has dominated the news for quite some time now, and we’ve been getting lots of questions from our readers about saving money in a post-tariff era, especially now that Walmart has announced they will begin raising prices in May due the tariffs.
With so much uncertainty surrounding the topic, we wanted to wait for more clarity and all the factual information we could get before tackling this issue. But with prices already rising and family finances being affected, we’d like to cover some tariff basics and discuss the impact they could have on your budget.
We’re keeping our explanation as simple as possible – no confusing terms or political debate – just what you really need to know to understand tariffs and keep your budget on track! And we want to reassure you that we continue to be committed to helping you save the most on every purchase, whether it’s everyday necessities like groceries, back to school supplies, or gift ideas.
What are tariffs?
A tariff is a tax on things made in other countries and brought into the US. Basically, if an American company wants to import goods from a tariffed country, the US government will charge the company an additional fee to do so.
Tariffs are designed to make the US less dependent on other countries, strengthen our country’s industries, regulate trade, and raise money for the government.
But these potential benefits could come at the expense of consumers when we end up paying more for things like food, clothing, and electronics.
Who pays tariffs?
American companies that import goods from other countries pay tariffs directly to the US government. But ultimately, you can expect these companies to pass along the increased costs to you, the consumer.
This means that many things we buy could cost more, including groceries, medicine, clothing, shoes, school supplies, electronics, and cars. Pretty much anything that comes from a country that has been tariffed, or anything that is made with parts from one of these countries, could now cost you more money.
So while individual shoppers are not directly paying the tariffs, your family’s budget will certainly be affected when companies raise their prices to cover the increased cost of doing business. Everything from basic items to big-ticket purchases could get more expensive as tariffs go into effect.
Are tariffs good or bad?
Tariffs are a controversial topic, so if you want to know their merits, it all depends on who you ask. Here’s a simple look at both sides of the issue:
Why some people think tariffs are good:
- The money from tariffs raises money for the US government.
- When imported goods cost more, people may buy more American-made products, thereby keeping more Americans employed.
- Small companies and local businesses can be more competitive when imported items aren’t the cheapest option.
- Tariffs encourage fair trade and may influence other countries to stop unfair practices (like using super-cheap labor, blocking US goods, etc.).
- By making imported goods more expensive (like steel or tech parts), tariffs can improve national security by keeping these industries strong at home.
Why some people think tariffs are bad:
- Shoppers pay more when businesses pass the extra cost on to them.
- Stores may have less variety if it’s too expensive to import certain goods.
- Some small businesses may be hurt if they rely on imported parts or materials.
- Tariffs can lead to trade wars if other countries fight back with their own tariffs, meaning US farmers and businesses might sell less of their goods to other countries.
- Tariffs don’t always work to change the behavior of other countries in a way that benefits the US.
What can shoppers do to save money with tariffs in effect?
Tariffs can increase prices, but there’s still a lot you can do to save money. If you’re part of the Hip2Save community, then you’re already taking important steps to make smart shopping choices and stretch your family’s budget.
When it comes to what we do here at Hip, nothing is changing. Our mission has always been to bring you the best deals, the best values, and the best path to an extraordinary life on an ordinary budget. We’ll continue to do that, so be sure to check in with us every day for all the best sales, coupons, and money-saving opportunities.
- Need groceries? Here’s where to find this week’s best deals on pantry staples, plus all the best grocery deals available right now.
- Feeding your family on the cheap? We try to keep our dinner recipes budget friendly with minimal ingredients while still being super yum. Or take advantage of one of these restaurant deals!
- Need new clothes? Check out all the best deals for men, women, kids, and plus-size shoppers – including shoes!
- Caring for a baby? We track all the best baby deals, including a weekly roundup of where to find diapers on sale.
- Got pets? Keep them healthy and happy with these pet deals!
It is robbery by Walmart!!! Very few ships are even coming into the ports to have taffiffs on the products. One more reason why Walmart is not getting my business…
That’s part of the reason for the hikes: less goods = more demand = hike prices.
I don’t agree with any company hiking prices but that’s the danger of tariffs – not just the % but the fact that stock will be limited making things more expensive.
Then I won’t buy from Walmart again. They don’t need to increase prices and blame it on tariffs. Greed
It’s not just ships. It’s also every truckload of non-USMCA goods from Mexico. Take a look at your Walmart along the very top of the shelves — there’s usually a sky-high pile of extra stock way up high. Right now, that area is empty in a lot of stores. They’ve burned through their inventory. Now they have to restock…and pay more….so we pay more. WM’s CEO actually recently expressed concern over the cautious behavior of U.S. consumers right now — they’re seeing consumers “trading down” to cheaper options, smaller sizes, buying less in general. They know how hard higher prices will hit.
I agree…I hate to say this but I feel like Walmart takes any excuse to raise their prices while they continue to rake in almost $650 BILLION a year. Absolutely disgusting. And they aren’t even a bargain anymore like they used to be, I stopped shopping there last year when I saw a lot of the products I was buying on the regular there go up to more than at my local Giant. I don’t even understand why people shop there anymore.
I’ve heard preppers saying get school supplies now. Not sure if price or supply is the issue. Maybe both?
Stock up on Aldi ULTRA paper towels! They’re every bit as good as Bounty.
Good to know the Aldi ULTRA paper towels are comparable to Bounty! 💕 Thanks for sharing!
THANK YOU Hip2Save Team for your excellent and concise explanation. I am “intimately” aware of the situation due to my work, but most people do not understand the fine points you explained so well.
I very mush appreciate that you care enough to explain and help everyone!
You’re SO very welcome, acgold! 🥰 We truly appreciate your kind words and thoughtful comment. It means a lot to hear that our post helped break things down clearly—even for someone already familiar with the topic! Thanks a ton for the encouragement and for being such a supportive part of the Hip community! 💕
No
You can say that you know about this intimately because of your job but you’re still sitting behind a screen.
We would need to judge that, not just take your work for it.
I also know about this intimately. See how that works?
With that being said no matter what anyone’s opinion it is better to have all of our products American made.
China does not have our best interests in mind.
It will improve and China and other countries will see that we are not going to be taken advantage of any longer.