Trump's tariff policy impacts Walmart, scraps fiscal quarter profit forecasts

Walmart announced Wednesday that it has canceled its expectations for first-quarter operating profit due to massive tariffs imposed by the Trump administration on China, Vietnam and other major global sources of goods. The decision highlights the impact of the current uncertain trade environment on Walmart's operations.

Wal-Mart said in a news interview that it wants to “maintain investment flexibility in pricing” as the tariffs are implemented. While the company expanded its forecast range for first-quarter operating profit, it did not provide a new range. Previously, Walmart had expected adjusted operating profit to grow between 0.5% and 2% in the current quarter.

Despite removing its profit forecast, Walmart maintained its expectations for fiscal first-quarter sales growth of 3% to 4%. The financial statement, along with high-level comments, comes on the eve of President Trump's announcement that he will impose tariffs of up to 125 percent on goods from China. Meanwhile, the U.S. has temporarily reduced tariffs on imports from dozens of countries to 10 percent. Treasury Secretary Scott Bessent revealed that about 70 countries have approached the White House about tariffs.

Walmart shares rose more than 9% on Wednesday following the announcement of Trump's tariff policy. In an investor briefing on Wednesday, Chief Financial Officer John David Rainey said, “Operating profit is now more difficult to forecast, and we have expanded the float of our internal forecasts in the current context.” He also noted that Wal-Mart is “still assessing the specific impact of this new tariff environment on the company.”

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