Walmart sees current diesel prices wiping out $2.9 billion tariff refund by end of 2027, Deutsche Bank says.
Source: Business Insider ·
Walmart previously said it wanted to plow tariff refunds into lowering prices, but now the company says higher fuel costs will erase that benefit.
From the source
Walmart is expecting up to an additional percentage point of inflation due to fuel costs in 2027, according to Deutsche Bank.David Paul Morris/Bloomberg via Getty ImagesWalmart is bracing for billions of dollars in additional fuel costs due to higher diesel prices.The company previously said it would put much of its $2.9 billion tariff refund toward lower prices.Now, higher fuel costs are likely to erase that benefit, and other retailers are likely to follow.Just when US shoppers might have thought they dodged the tariff jab, energy costs are coming in with the right hook.Deutsche Bank says Walmart executives are now expecting the added cost of higher diesel prices to wipe out their total expected benefit from tariff refunds and push prices back up, according to a Thursday analyst note following a meeting with Walmart CFO John David Rainey."Elevated diesel is pressuring WMT directly through transportation costs and indirectly as suppliers pass through higher costs, including on…