Walmart said it will have to raise prices due to President Donald Trump‘s tariffs. 

Despite Trump announcing trade deals with the United Kingdom and China, which lowered tariffs as he attempts to de-escalate the trade war that ensued following his April “Liberation Day” tariff announcement, Walmart said it will not be able to keep prices as low as they have been.

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“We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon said Thursday on an earnings call. “The higher tariffs will result in higher prices.”

The company reported strong quarterly sales and expects sales to grow from 3.5% to 4.5% in the second quarter.

In an interview, Walmart CFO John David Rainey said consumers will likely see higher prices at the end of the month. 

“I’m concerned that consumers are going to start seeing higher prices,” Rainey told CNN. “You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”

Meanwhile, the United States and China entered a trade deal in which the U.S. agreed to lower its 145% tariff imposed on China to 30%. 

While two-thirds of Walmart’s products are sourced in the U.S., the company heavily relies on China to supply its toys and electronics. 

HERE ARE THE EXECUTIVE ORDERS THAT HAVE BEEN STRUCK DOWN

Defenders of Trump’s trade policy say it will boost manufacturing in the U.S., but critics argue that Trump’s tariffs will raise prices. 

Last week, the Federal Reserve found that Trump’s tariffs have led to a .3% increase in prices.