In May, McMillon warned of tariff-driven price hikes for a wide range of goods that includes food, toys and electronics. Trump publicly criticized Walmart for saying it would hike prices, calling on the company to “eat the tariffs.”

Walmart has a three-pronged strategy to deal with tariffs, and is making sure shoppers aren’t the only ones taking a hit.

Big-box retailer Walmart reported solid revenue growth Thursday and said that it expects better sales and earnings for the full year, as customers feel the squeeze from higher tariffs imposed by US President Donald Trump.