Walmart Predicts a Slower 2025, Signaling Potential Challenges for the U.S. Economy.

During the U.S. inflation crisis, shoppers have turned to Walmart for affordable groceries and essentials. However, the retailer warned on Thursday that 2025 could be more challenging as consumers grow frustrated with inflation and concerned about President Donald Trump’s tariffs.

Walmart projected slower sales and profit growth this year, causing its stock to drop about 6% and dragging the Dow down by over 1%. Despite this, the company noted that consumer demand remains strong, expecting sales to rise up to 4% and profit by 5.5%—figures that fell short of investor expectations.

As the largest U.S. retailer, Walmart serves as a key indicator of consumer spending trends. Its forecast suggests a tougher year ahead for the retail sector. David Silverman, senior director at Fitch Ratings, expects continued volatility in 2025, particularly for lower-income consumers affected by tariffs.

Walmart’s growth has been driven by higher-income shoppers seeking grocery savings and its expanding online services, including in-store pickup and the Walmart+ delivery membership.

However, the company acknowledged challenges from tariffs. Trump recently imposed a 10% tariff on Chinese goods and a 25% tariff on steel and aluminum imports, while pausing tariffs on Mexico and Canada until March.

Walmart finance chief John David Rainey noted that while the company expects a stable economic environment, uncertainties remain regarding consumer behavior and global conditions. Walmart’s scale allows it to negotiate better prices than smaller retailers, but Rainey admitted the company is “not completely immune” to tariff impacts.

Americans are increasingly worried about the economy. A CNN poll found that 62% of adults believe Trump hasn’t done enough to lower prices. Inflation remains a concern, with consumer prices rising 0.5% last month—the fastest increase in over a year—driven by higher energy and food costs.

Despite rising egg prices due to avian flu, Walmart expects overall inflation to remain within the normal range of 1% to 2% this year.