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Walmart shoppers could see higher prices in the near future. The company's Chief Financial Officer, John David Rainey, shared that rising costs may soon show up on store shelves.

In a recent interview, Rainey said the company is preparing for price increases that could begin later this month and continue into June. The reason? New and ongoing tariffs on goods coming into the US.

"We're wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb," Rainey told CNBC. "It's more than any supplier can absorb. And so I'm concerned that consumer is going to start seeing higher prices."

Walmart, the world's largest retailer, reported last week that it just missed revenue expectations for the February–April quarter.

Still, the company beat earnings forecasts and posted a historic first: its e-commerce business made a profit in the US and globally for the first time.

According to CNBC, sales in the US rose to $112 billion, and global revenue increased to $165.61 billion, a 2.5% gain from the same time last year.

Despite strong sales, Walmart warned that tariffs—extra taxes on imported goods—are already pushing up costs.

Around one-third of the items sold at Walmart come from other countries. Some of the biggest suppliers include China, Mexico, India, Vietnam, and also Canada.

Walmart Warns of Price Hikes Despite Lower China Tariffs

Walmart CFO John David Rainey says that even though the US has temporarily cut tariffs on Chinese goods from 145% to 30%, it likely won't provide much real relief for shoppers.

CEO Doug McMillon echoed this concern, especially when it comes to items like toys and electronics that are heavily sourced from China.

"We're positioned to manage the cost pressure from tariffs as well or better than anyone," McMillon said, "but even then, we can't fully avoid passing some of those costs to customers."

Food prices are also being affected. Tariffs on countries like Costa Rica, Peru, and Colombia are driving up costs on bananas, avocados, coffee, and roses, Observer said.

Walmart says it's doing its best to keep prices steady, even choosing to absorb some of the extra costs. Despite rising costs, Sam's Club chose not to raise flower prices for Mother's Day, aiming to give customers value during the holiday.

Walmart did not provide an earnings forecast for the next quarter, citing the unpredictability of tariff changes. However, it expects net sales to grow between 3.5% and 4.5%.

As US consumers look to stretch their dollars, Walmart plans to stay competitive. "We're going to play offense," Rainey said, "by keeping our prices lower than the competition, even if it means smaller profit margins."

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