Walmart and Target are reportedly in negotiations with suppliers over proposed price increases due to tariffs.
As Reuters reported on Monday (March 24), the outcome of these discussions will determine when and by how much product prices rise—and could even influence which items remain in stock.
Retailers argue that raising prices could lead to a loss of market share and customers, which has resulted in tense discussions with suppliers whose costs have surged following tariffs imposed by President Donald Trump.
For instance, Minnesota-based cookware manufacturer Nordic Ware has experienced cost increases of 10% to 15% due to tariffs on the aluminum used in its products. CEO David Dalquist told Reuters that pricing has become a challenge, particularly because most retailers require a 60-day notice for price adjustments.
“You can’t just hand it to them,” he said. “Then they review it and conduct their own analysis on whether it’s justified.”
While retailers carry out these evaluations—often taking months—companies like Nordic Ware must absorb the higher costs.
“Our conversations with suppliers are all focused on fulfilling our mission for millions of customers, and we will continue to work closely with them to find the best path forward in these uncertain times,” Walmart stated to Reuters.
Target referred news outlets to recent comments from its executives during an investor meeting. At the meeting, the company said it was still too early to determine how pricing would change on a product-by-product basis but emphasized taking a comprehensive approach to pricing analysis.
Recent research by PYMNTS highlights the financial strain tariffs are placing on businesses of all sizes. A majority of middle-market Chief Financial Officers (CFOs) believe tariffs will exacerbate major challenges for their companies.
According to the March edition of PYMNTS’s 2025 Certainty Project, 60% of these CFOs think tariffs will increase economic uncertainty and complicate business planning.
“The uncertainty factor affects key business operations,” PYMNTS wrote. “Nearly 7 in 10 CFOs foresee supply shortages or delays, with a similar number anticipating new costs to restructure their supply chains. Most CFOs also predict rising raw material costs and are concerned that retaliatory tariffs will complicate their exports.”
Among smaller businesses, only a small fraction foresee any positive impact from tariffs, with the majority expecting issues such as product shortages and declining product quality.
