Walmart has a secret weapon shoppers will love | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

President Donald Trump announced in February that he would implement a 25% additional tariff on all goods imported into the U.S. from Canada and Mexico, a 10% tariff on China, and a 10% levy.

However, on Apr. 2, President Trump declared that foreign trade and economic practices created a national emergency. He implemented new, higher tariffs on products imported into the U.S. from many countries, including an additional 10% baseline tariff.

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President Trump claims that these newly imposed tariffs encourage the production and purchasing of American-based products, which will increase America’s competitive edge, protect sovereignty, and strengthen national and economic security.

Nonetheless, the new tariffs have increased companies’ concerns about the potential financial repercussions they could bring to their businesses, especially those highly dependent on imported goods from these select countries.

Walmart responds to tariffs.

Image source&colon; Jeff Greenberg/Getty

Walmart has a secret weapon against tariffs that it has developed for years

Walmart+ is a subscription-based membership program that provides members with perks such as free shipping, delivery, returns, gas savings, exclusive offers, and more. It even offers a free Paramount+ subscription to make joining even more enticing.

Since launching in 2020, this subscription-based program has shown consistent growth, with its membership income growing double digits in the fourth quarter of 2024, as the company stated in an earnings call.

Walmart’s net sales were up by 5% in the fourth quarter of fiscal 2024 compared to last year, so Walmart+ growth makes it a very lucrative part of its business.

Customers who belong to the membership program also accounted for almost half of the total spent across the company’s e-commerce platforms in the U.S. for the year, creating a loyalty-based consumer who opts to obtain most of its necessities from Walmart rather than anywhere else.

This is a good sign for Walmart because consumers are more likely to continue shopping at the retailer despite the potential price increases that the new tariff implementations may bring.

Walmart responds to tariffs and eases consumers’ worries

Walmart (WMT) is a retail giant, so the tariffs will likely not affect its business as much as they would smaller retailers. However, the success of Walmart+ will allow it to continue boosting growth at the same rate or even faster.

The retailer also sells mainly essential goods, so consumers will continue buying these necessary products even if the prices increase.

To ease consumers’ worries, Walmart has stated its goal to keep prices low, living up to its commitment to making obtaining daily necessities attainable to all consumers.

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When reporting its guidance for 2025, the retail giant didn’t make any assumptions about the tariffs’ effects on its business, as it feels confident that it will be able to navigate the environment and any other uncertainty.

“Tariffs are something we’ve managed for many years, and we’ll just continue to manage that. We’ve got a great team. We know how to do that. We can’t predict what will happen in the future, but we can manage it really well. And we’re wired to try and save people money. So that will be our ultimate goal,” said Walmart’s CEO, C. Douglas McMillon, in an earnings call.