Walmart CEO Doug McMillan made the announcement.
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00:00The world's largest retailer is raising prices, and it's blaming the White House.
00:04Walmart announced it has no choice but to increase the prices on some of its items,
00:08claiming President Trump's trade war is upping the company's costs.
00:11On its recent earnings call, CEO Doug McMillan told investors,
00:15we will do our best to keep our prices as low as possible.
00:18But given the magnitude of the tariffs, even at the reduced levels announced this week,
00:22we aren't able to absorb all the pressure given the reality of narrow retail margins.
00:26The higher tariffs will result in higher prices.
00:30Unlike many of its competitors, only a small portion of Walmart's inventory comes from China,
00:34around 15%.
00:35Groceries make up around 60% of its items, and most of those are sourced from within the U.S.
00:40In its earnings call, the retailer said sales at stores open for at least one year rose 4.5% last quarter.
00:46Walmart said the price hikes will go into effect later in May.
00:50That'll do it for your Daily Briefing.
00:51From New York City, I'm Kelsey Barbario with The Street.