Walmart Stock Gains Amid Tariff Uncertainty, Retail Sector Braces for Impact
Walmart shares defied broader market concerns as President Trump's proposed 100% tariff on Chinese imports looms. The retail giant, which sourced 60% of its goods from China in 2023, faces significant exposure in key categories including apparel, electronics, and home furnishings.
The November 1 tariff deadline threatens to disrupt what had become a 'new normal' of 30% levies. Wedbush estimates show rival Amazon carries even greater China dependence at 70% of sourced goods. Walmart previously withdrew margin guidance after being told to 'eat the tariffs' earlier this year.
Supply chain diversification efforts continue as faltering consumer confidence adds pressure. The retail sector now faces a critical test of its ability to absorb costs without passing them to price-sensitive shoppers during the crucial holiday season.
