Walmart, Inc. ( WMT ) CEO Doug McMillon told analysts on the company’s earnings call on Thursday that the retailer will be raising prices on some items as a direct result of ongoing tariffs imposed by the Trump administration. 

Despite a recent reduction in some tariff rates, McMillon said that the magnitude of the tariffs is still too great for Walmart ( WMT ) to absorb without passing some of the increased costs onto consumers.

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“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margin,” McMillon stated. 

What It Means For Consumers: The Walmart ( WMT ) CEO warned that shoppers can expect to see price increases beginning at the end of May, with more noticeable price hikes coming in June. 

The price increases will primarily impact goods that are heavily imported, such as electronics and toys (which are largely sourced from China). Seasonal items, such as back-to-school supplies, may also see noticeable price increases. 

Some imported food items imported from countries such as bananas, avocados and coffee will also be affected. McMillion did say that Walmart ( WMT ) will work to keep its food prices as low as possible after years of inflation have driven grocery prices higher.   

"We won’t let tariff-related cost pressure on some general merchandise items put pressure on food prices … We’ll do our best to control what we can control in order to keep food prices as low as possible," he said. 

What It Means For Retailers: Walmart ( WMT ) acts as a bellwether for the retail sector and the mega-retailer's decision signals that other companies may also raise prices to offset increased costs from tariffs. 

Industry analysts warn Walmart's ( WMT ) move is likely to set a precedent for other retailers who compete on price or rely on similar supply chains. 

“If Walmart is raising prices, it certainly means that other retailers are going to be raising prices as well,” Justin McAuliffe, a Gabelli Funds research analyst, told Axios.

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