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Walmart Raises Prices; Trans-Pacific Rates Rebound; China's 'Invasion Platforms' By Mark R. Long

Walmart is raising prices as tariff-hit products reach the retail giant's shelves.

The WSJ's Sarah Nassauer writes some prices are already higher-bananas are now 54 cents a pound, up 4 cents -with more increases to come this month and early this summer. Other retailers will likely follow Walmart, which counts 90% of Americans as customers and is the largest company yet to signal that tariff-related price hikes are coming. Many companies raced Chinese-made products across the Pacific to get ahead of the new duties, which delayed the full effect of the levies on retailers' pricing. This week's temporary deal with China brought the base tariff to 30% from 145%, but this would still lead to meaningful price increases for most consumers, Walmart said. The Commerce Department said consumer spending rose slightly last month, with the pace of growth easing as trade concerns weighed on purchases.

Walmart said its customers continued to shop cautiously as they have for the past few years as groceries and child care grew more expensive. It didn't share a profit forecast for the current quarter, but, unlike many other companies , Walmart stood pat on its cautious sales and profit forecasts for the full year.

Deere incurred about $100 million in tariff expenses in its fiscal second quarter and expects the cost will reach just over $500 million for the year. (WSJ) Trump told Apple's CEO that he didn't want the iPhone maker to produce more of its devices for the U.S. market in India. (WSJ) Shein is leasing a large warehouse in Vietnam, the China-founded online retailer's first. (Reuters) CONTENT FROM: PENSKE Gain AI. Gain Ground with Penske.

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Container Rebound

The cost to ship a container across the Pacific is rising in the wake of the U.S. and China's trade détente.

Shipping executives and brokers in Singapore and London say ocean carriers are jacking up their rates by as much as 50% in the coming 10 days or so, the Journal's Costas Paris reports, This would put the cost to send a box from Shanghai to L.A. to over $3,000 per twenty foot equivalent unit. Freight forwarders say carriers are quoting rates for sailings through the end of May at about $900 a TEU higher than this week. This week's tariff rollback has effectively pulled forward the industry's peak season, which typically runs from July to October as retailers stock up for back-to-school and holiday shoppers. Whether the surge in bookings and rates has legs remains to be seen , as rising prices for consumer goods could damp demand.

The Port of Long Beach expects imports of containerized cargo to the California port in May to be down 10% year-over-year. (gCaptain) Major railroads including Union Pacific and Canadian National expect a quick rebound in Chinese exports to the U.S. following the tariff rollback. (Trains Magazine) Strait Armed

Beijing's new ships can land on beaches and link up to form huge mobile piers. A defense analyst and former Navy officer explains how they are designed to rapidly offload military gear, setting the stage for a D-Day style assault across the Taiwan Strait, one of the world's most critical shipping corridors.

Number of the Day In Other News

U.S. industrial output was flat in April, as lower manufacturing and mining output were offset by growth in utilities, the Federal Reserve said. (Dow Jones Newswires)

Factory sales in Canada fell sharply in March as U.S. tariffs came into effect. (WSJ)

The eurozone economy grew less rapidly than previously estimated, despite a boost to factory output as U.S. firms stocked up on imports ahead of tariffs. (WSJ)

The European Union wants a U.S. trade deal with bigger tariff cuts than American talks with the U.K. and China have yielded so far. (WSJ)

The U.K. economy outpaced growth in the U.S. and the eurozone in the first quarter, though a slowdown likely lies ahead. (WSJ)

Mexico's central bank extended its string of half percentage-point interest-rate cuts, lowering the overnight interest-rate target to 8.5%. (WSJ)

The International Energy Agency expects oil-demand growth to be stronger than previously forecast on lower oil prices and a less severe hit from tariffs on the economy. (WSJ)

U.S. home builders' confidence worsened on concerns over tariffs, high interest rates and rising costs of materials. (Dow Jones Newswires)

Rio Tinto will invest $1.2 billion to modernize a hydroelectric power plant in Quebec in a bid to secure future aluminum production. (Dow Jones Newswires)

Geely Automobile's quarterly profit more than tripled on record sales in China's increasingly competitive electric-vehicle market. (WSJ)

Italy's Iveco and Germany's Thyssenkrupp are advancing plans to spin off their defense units amid a European defense boom. (WSJ)

DAT Freight & Analytics acquired Outgo , a payments and factoring technology provider. (Journal of Commerce)

Denmark is launching the world's first test program that would allow port pilots to guide ships from land without boarding vessels. (Splash 247)

A quarter of U.S. freight companies recently surveyed say a labor shortage is the biggest issue affecting trucking businesses. (Supply Chain Brain)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

May 16, 2025 07:23 ET (11:23 GMT)

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