The world's largest retailer — like many others — has been absorbing most of the increased costs, but raising prices of some goods.

Still, its profit missed the mark slightly for a variety of reasons, including its decision to absorb the costs of tariffs on some items (though certainly far from all). “With regards to our U.S. pricing decisions,

Walmart said its tariff-related price increases were limited to 10 percent and the company was absorbing the rest of the costs

Walmart Inc. reported increases in second-quarter profits and sales Thursday as it pulls in shoppers seeking low prices for groceries and other essentials to offset worries that new U.S. tariffs may make a variety of goods more expensive.

The food discounts were part of 7,400 temporary price reductions during the quarter, company executives told investors.

Walmart will soon begin increasing prices across its inventory in response to the tariffs imposed by President Donald Trump.

Walmart's results WMT.N on Thursday show U.S. consumers across the spectrum are still flocking to the retailer's stores despite economic headwinds, but shares dipped as the company's margins ebbed and inventory costs rose.

Shares were down 4 per cent yesterday, as its second-quarter profit was lower than expected, registering Walmart’s first earnings miss in more than three years. Its 12-month forward price-to-earnings ratio of 36.64 is roughly double the industry median and nearly three times higher than Target’s.

Walmart is one of the most famous retail stores in the country, as people rely on it for their affordable prices and deals. However, they recently were caught doing wrong by their customers out in California,

Target also imports about half of its merchandise, compared to roughly 33% at Walmart, so it needs to raise prices at almost double the rate of Walmart to mitigate the tariff impact, Bank of America analyst Robert Ohmes said in a report this week.