Walmart said U.S. tariffs on Chinese imports and other countries will force retail giants to start raising some prices as soon as this month.

Doug McMillon, the company's CEO, said Thursday that many items on store shelves cost more and will start spending more money for shoppers. Walmart’s financial director said prices may appear soon this month and summer.

Speaking with investors after the release of quarterly earnings, McMillon said Walmart will work to protect food prices.

“We will do our best to keep prices as low as possible,” he said. “However, given the magnitude of the tariffs, we cannot absorb all the pressure even at the lower levels announced this week, as retail margins are narrow in the retail industry.”

He thanked President Trump and Treasury Secretary Scott Bessent for "recent advances" and temporarily reduced Chinese tariffs from 145% to 30%. McMillan said he hopes to reach a long-term deal to reduce taxes on Chinese imports. He said he hopes the government can raise tariffs on foods such as bananas and avocados that will not grow in the United States but will face a general 10% tariff when imported.

Retail is a key pillar of the U.S. economy, and in recent months some have begun tightening their budgets as additional tariffs are expected to be higher. New government data shows people are choosing places that spend more, such as outings in restaurants and bars, which helps sell overall sales from the sunk, which helps overall retail compared to March.

"Consumers are generally rich, they just lose the will to spend money," Robert Frick, an economist at Naval Federal Credit Union, said in a statement. "The tension over tariffs and even the job market has allowed Americans to save more and spend less, but consumption is still increasing, how slightly."

Walmart reported sales rose 4.5% in the latest quarter between February and April. Executives say about two-thirds of Walmart's U.S. goods are grown, manufactured or assembled at home. However, retailers still import from dozens of other countries, especially electronics and toys from China.

The largest consumer brands have begun warning about the situation in the U.S. consumers and cut sales forecasts for a year due to tariffs. These include Pepsi (also owns Frito-lay and Quaker Oats), Kimberley-Clark (making Kleenex, Huggies and Scott toilet paper) and Procter & Gamble (which makes the Tide, the Little Nanny and Charmin).

The big theme remains uncertainty as the Trump administration negotiates deals with different countries and changes its stance on tariffs. The trade war intensified in early April, so price increases have not affected the cost of living yet, and inflation was easing last month.