Retail chain Walmart (WMT) is flying the flag for America giving strength to President Trump’s tariff strategy by creating more Stars and Stripes-based jobs.
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Increased Investment
Walmart U.S. chief executive John Furner said it is increasing its investment in U.S.-made products and suppliers.
“Investing in US manufacturing and US operations, sure, it’s great for business, but it’s also great for employment. It’s great for jobs. It’s great for the country, and it helps us with our supply chain being flexible and dynamic,’ the chief executive told CNBC’s Invest in America Forum.
Furner claimed that almost two-thirds of Walmart’s inventory is made, grown, or assembled in the US — and it wants to expand that number.
A new beef processing facility in Olathe, Kansas, is part of this expansion, creating 600 new jobs. The company also recently hosted its 12th annual Open Call this week involving 500 entrepreneurs from 47 states trying to win space on the Walmart shelves. Each product they pitched is made, grown, or assembled in the U.S.
Although not directly quoting the impact of Trump tariffs, nudging or forcing U.S. corporate giants to up their spending on U.S. manufacturing to create domestic jobs is at the heart of the strategy.
Overseas Aims
The thinking being is that if it is too expensive to import from countries such as Canada and India then those supplies will need to be sourced closer to home.
In 2021, Walmart announced a $350 billion, 10-year commitment to purchase products made, grown or assembled in the U.S. As of the end of last year, Walmart increased cumulative U.S. spend by $176 billion toward its $350 billion goal, and about two-thirds of Walmart U.S. product spend was on goods suppliers reported were sourced domestically.
But, as Furner pointed out, there are limits.
‘We source from all around the world,’ Furner said. ‘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.’
Indeed, Walmart wants to be an international company with sales growing in key markets such as Canada and Mexico – see above. It is not America First at Walmart, but the strategic shift towards a bigger domestic presence looks clear.
Is WMT a Good Stock to Buy Now?
On TipRanks, WMT has a Strong Buy consensus based on 29 Buy ratings. Its highest price target is $129. WMT stock’s consensus price target is $115.07, implying a 7.29% upside.
