Anyone shopping at Walmart in Montana these days is likely to notice a new reality: the same groceries, school supplies, and household staples are costing more than they did just months ago. It’s not a figment of the imagination or a sign of local price gouging—America’s largest retailer is pointing the finger squarely at import tariffs, and the effects are rippling through checkout lines across the state and the nation.
According to Walmart executives, and as reported by outlets including TownSquare Media and Axios, the ongoing tariffs are steadily raising costs for the company as it restocks its shelves with goods subject to the new levies. The pressure isn’t just theoretical. Walmart CEO Doug McMillon, during an earnings call on August 21, 2025, made it clear: “We aren’t seeing dramatic shifts the way things have played out so far,” he said, “but any behavioral adjustments by the customer have been somewhat muted.” Still, he acknowledged, “Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher income households.”
Montanans are feeling the pinch. Whether it’s picking up fishing gear in Helena or stocking up on back-to-school supplies in Missoula, shoppers are finding that the tariff-driven increases—though gradual—are adding up. “Walmart has tried to soften the blow with rollbacks, but admits some increases are unavoidable. Translation: Montana wallets will keep taking hits,” TownSquare Media reported.
Walmart, which has long prided itself on being the “low-price leader,” is working hard to keep its reputation intact. McMillon emphasized, “With regard to our U.S. pricing decisions, given tariff-related cost pressures, we’re doing what we said we would do. We’re keeping our prices as low as we can for as long as we can.” To that end, Walmart has ramped up its use of “rollbacks”—temporary price reductions—to more than 7,400 items, a jump of 2,000 from the previous quarter. Grocery rollbacks alone are up 30% compared to the same quarter last year, according to Walmart CFO John David Rainey.
But even with these efforts, not all price hikes can be avoided. As CNN Business reported, McMillon admitted that “tariffs have created pressures for the company and it’s seeing its ‘costs increase each week.’” The company expects these pressures to persist into the third and fourth quarters of 2025, with no immediate relief in sight. “Walmart says it’ll keep battling to stay the ‘low-price leader,’ but even they can’t out-muscle a tariff hike,” TownSquare Media observed. And when Walmart can’t hold the line, smaller local retailers often find themselves in an even tougher spot, unable to absorb the extra costs and forced to pass them on to customers.
The impact of tariffs is especially evident in imported goods like electronics and furniture, where the cost increases are more challenging to offset. NPR retail correspondent Alina Selyukh explained that while Walmart has managed to keep some back-to-school items cheaper this year than last, “for some things that are imported, the cost of tariffs trickles down, and we’ve seen some of that on electronics and furniture, for example.” She added that the company has tried to mitigate the blow by absorbing costs, pressuring suppliers, and even changing up the product mix on its shelves.
One strategy that helped Walmart—and other major retailers—initially was stockpiling inventory before the latest rounds of tariffs took effect. As Selyukh put it, “The Trump administration delayed the big tariffs so many times that companies were able to order their foreign goods in advance, while imports were not as expensive.” But now, those stockpiles are running low, and replenishing inventory means paying the new, higher tariff rates. The result? More prices are starting to reflect the increased costs, and shoppers are beginning to notice.
It’s not just about sticker shock, either. The subtle shifts in consumer behavior are being watched closely by Walmart’s leadership. McMillon noted that higher prices are “having an effect, particularly on middle-income and lower-income shoppers. They sometimes switch what they’re buying. Sometimes they simply skip that purchase.” Yet, he also pointed out a countertrend: Walmart is attracting more higher-income shoppers looking for bargains, a dynamic that began last year as inflation concerns mounted and continues today.
Despite these challenges, Walmart’s overall sales remain robust. The company reported strength at both its core retail stores and its Sam’s Club warehouse locations. In fact, the retailer’s fast delivery options have become a major draw, especially for higher-income customers. “Approximately one-third of deliveries from store in recent weeks were fast delivery in 3 hours or less,” Rainey said, with “20% of those deliveries arrived to our customers in 30 minutes or less.”
Still, the financial strain is real. Walmart missed its fiscal second-quarter profit expectations, a result attributed in part to the higher costs imposed by tariffs. Yet, the company raised its full-year outlook, signaling confidence in its ability to navigate the turbulent waters ahead. The back-to-school shopping season is being closely watched as a bellwether for the crucial holiday period. “We’re expecting to have a good holiday season at Walmart,” McMillon said, suggesting that consumer resilience and Walmart’s value proposition may help offset some of the negative impact of tariffs.
Political pressure is never far from the conversation. Last quarter, when Walmart warned that tariffs would force price increases, former President Trump publicly demanded that the retailer “eat the tariffs” rather than pass on the costs to consumers. Treasury Secretary Scott Bessent later said he had spoken to McMillon and that Walmart would absorb “some” of the tariff impact. But as the months roll on and costs continue to climb, even the world’s largest retailer can only do so much.
For now, most shoppers haven’t dramatically changed their habits. As McMillon observed, “The impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted.” But the company is keeping a close eye on the data, especially as economic uncertainty remains a top concern for many Americans. Home Depot’s CEO, for example, recently noted that “the No. 1 thing people still say is preventing them from doing major projects is worry about economic uncertainty.”
One thing is clear: the effects of tariffs are no longer abstract policy debates—they’re showing up on receipts in Montana and across the country. As Walmart continues its balancing act—absorbing some costs, rolling back prices where possible, and passing along others—shoppers of all stripes will be watching their wallets a little more closely in the months ahead. The battle to keep prices low isn’t over, and for many families, every cent counts.
