Walmart recently reintroduced a “basket fee” for customers using government assistance programs, but the company insists that this decision is unrelated to President Trump’s tariffs.
The company charges a $6.99 fee for grocery delivery and pickup orders under $35. During the pandemic, Walmart waived this fee for customers who participate in the Walmart+ Assist program, which offers discounts for individuals receiving SNAP, WIC, Medicaid, and other benefits. However, the fee returned in late April.
The Daily Mail reported that Walmart said the fee rollback was part of broader cost-cutting efforts, with the company citing financial uncertainty stemming from the new tariffs imposed by President Donald Trump. However, Walmart told Mashable that the reintroduction of the basket fee had nothing to do with tariffs, emphasizing that such fees are standard practices among similar retailers like Target.
Walmart’s Response to Tariffs and Financial Strategy
During an April 9 investment community meeting, Walmart President and CEO Doug McMillon mentioned that the company was “still working through what [the new tariff environment] means for us.” He pointed out that more than two-thirds of what Walmart sells in the U.S. is made, grown, or assembled in the country, but also acknowledged that China and Mexico remain significant import partners.
Walmart dealt with Trump’s tariffs during his first term, McMillon explained. “It’s a management opportunity, and that’s the way that I think about it,” he said. “We’re going to focus on what we can control, and we’ll do our best to keep prices as low as we can.”
Impact of Tariffs on Electronics and Smaller Companies
The Consumer Technology Association (CTA) recently projected price increases of 20% to 30% for various electronics if President Trump intensifies tariffs on China and other Asian countries. For instance, desktop computers could see an average price increase of $287, monitors could rise by $111, and consoles could go up by as much as $428—if vendors fully pass the tariff costs onto consumers.
Smaller companies are already feeling the impact. Adafruit, a New York-based DIY computer parts reseller, shared that its most recent shipment of components came with an import bill of $36,126, reflecting the real-world effects of the tariffs.
In addition to reintroducing the basket fee, Walmart has also been implementing cost-cutting measures, including laying off hundreds of employees in one of its offices in North Carolina earlier this year.
What The Author Thinks
While Walmart is undoubtedly facing financial pressure, its decision to reintroduce the basket fee could be better explained to its customers. The company’s reasoning seems tied to broader economic factors like tariffs, but it’s essential that Walmart be more transparent about why these changes are necessary. By improving communication about the causes of these changes and showing that it’s putting customer interests first, Walmart can maintain trust and loyalty among its shoppers. Clearer explanations of why such fees are needed would go a long way in keeping its customers satisfied.
Featured image credit: Wikimedia Commons
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