Walmart CEO John Furner said the global retail giant is increasing its investments in U.S.-made products as a result of President Trump’s tariffs.
Furner’s remarks came Oct. 15 at CNBC’s inaugural Invest in America Forum in Washington, D.C. He said the tariffs are forcing American retailers to look more closely at American-made goods.
“Investing in U.S. manufacturing and U.S. operations, sure, it’s great for business, but it’s also great for employment,” he said. “It’s great for jobs. It’s great for the country, and it helps us with our supply chain being flexible and dynamic.”
Furner said two-thirds of Walmart’s inventory is made, grown or assembled in the U.S. In April, Reuters estimated that the retailer sources 60 percent of its goods from China. The company will be looking to increase its reliance on domestic goods, though not all products can be made or grown on U.S. soil, he added.
“It’s a big investment, and having quality products that are sourced in a more sustainable way that can deliver to customers is really important,” he said. “We source from all around the world. There are things that are grown around the world that tend to do better in other climates, you know, coffee might be an example. I think there are a lot of possibilities.”
Products made in America are often more expensive because they are not made as cheaply. Whether American consumers are willing to foot the bill for domestic products remains to be seen.
“We want to try to keep prices as low as we can, as long as we can,” Furner said. “We see a resilient customer that makes really smart choices for what’s right for them and their families at the time of shopping.”
He also warned of changes as the global economy transforms.
“As policies change, they’ll change,” he said. “Environments will change. That happens. Commodities change. We’ve landed in a place where we have more rollbacks going into the fall than we had at the beginning of the year, and that’s something we’re proud of.”
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