Walmart has announced it will be raising prices in response to tariffs that are driving up merchandise costs. The decision comes as the U.S. government has imposed tariffs on imports from China and other countries, leading to increased costs for large retailers, including Walmart.

According to Walmart's Chief Financial Officer, John David Rainey, while the retailer aims to keep prices low, the impact of these tariffs may necessitate price hikes for certain items. Categories such as electronics, clothing, and general merchandise are expected to face these adjustments, as reported by Axios.

Walmart is also addressing the cost pressures by urging its suppliers to absorb some of the increased tariffs. This move has led to tensions, particularly with Chinese manufacturers. The broader consumer market may see effects on spending, especially in areas reliant on imported goods, highlighting the broader economic implications of these tariff-induced changes.