Walmart CEO reveals why Trump's trade war with China still has him worried over rising prices (WMT)

  • Walmart CEO Doug McMillon told CNBC that consumers will take the hit if the US trade war with China escalates.
  • He added that US President Donald Trump's tariffs have created "uncertainty as it relates to pricing."
  • Walmart has established itself as a major critic of Trump's trade policies as they pertain to China.

Walmart CEO Doug McMillon is sounding the alarm on the US-China trade war once more.

"We worry about next spring, next summer, next fall what customers will have to pay if tariffs do escalate," McMillon told CNBC on Thursday.

McMillon's expressed concerns about a worsening trade war come amid the 90-day ceasefire US President Donald Trump and Chinese President Xi Jinping agreed to at the recent G20 summit. But despite this pause, analysts are predicting that the two sides will fail to come to an agreement in 90 days.

RELATED: Products Walmart worries could get slammed by Trump's trade war

26 PHOTOS
Products Walmart worries could get slammed by Trump's trade war
See Gallery
Products Walmart worries could get slammed by Trump's trade war
1. Mandarin oranges in cans
2. Rawhide for pets

3. Hair care

(Photo by: Jeffrey Greenberg/UIG via Getty Images)

4. Other bath prep

(REUTERS/Lucas Jackson)

5. Dog leashes, dog collars

(REUTERS/Caitlin Ochs)

6. Cat leashes, pet costumes
7. Hard luggage
8. Luggage, tote bags, duffle bags, handbags
9. Travel bags
10. Handbags

11. Backpacks

(Photo by Bradley C. Bower/Bloomberg via Getty Images)

12. Rolled wrapping paper
13. Gas grills
14. Makeup mirrors

15. Vacuum cleaners

(Photo by Tim Boyle/Getty Images)

16. Toothbrush replacement heads
17. Electric razors

18. Air conditioners

(Photo by Stephen Hilger/Bloomberg via Getty Images)

19. HDMI cables, video cables, extension cords, auxiliary cords
20. Oil-less fryers and toaster ovens

21. Bicycles

(Timothy Fadek/Bloomberg via Getty Images)

22. Futons
23. Wooden furniture

24. Miscellaneous furniture, like infant pack-and-plays or patio furniture

25. Mattresses

(Photo by Milbert O. Brown/Chicago Tribune/MCT via Getty Images)

26. Christmas lights

(Patrick T. Fallon/Bloomberg via Getty Images)

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

McMillon said Trump's policy on tariffs has created "uncertainty as it relates to pricing."

Read more:For the first time, China confirmed major details about the Trump-Xi trade deal. It could only intensify the scramble over the next 90 days.

"It causes us to start thinking about where we want to source goods from," McMillon said. According to the CEO, China is Walmart's second-largest source of goods, after the US.

McMillon told CNBC that, while Walmart has been able to keep prices down for the time being, certain "categories" of products are especially in danger of seeing a price hike due to the trade war. Business Insider's Bob Bryan previously reported that items like gas grills, video cables, bicycles, futons, mattresses, and Christmas lights are all especially at risk.

And this isn't the first time that Walmart has weighed in on Trump's trade policy. Back in September, the retailer published a letter saying that it was "very concerned" about how the trade war would possibly "raise prices on consumers and tax American business and manufacturers."

More from Business Insider:

Read Full Story