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As tariffs spark worries of higher prices, Walmart is dangling more discounts for its own employees.

The largest private U.S. employer said Wednesday that it will offer a 10% employee discount on nearly all groceries, including milk, meat and frozen food. That discount previously applied to fresh produce and most general merchandise items, such as clothing and toys, but only to other food during the holiday season.

In a memo to employees obtained by CNBC, Walmart's chief people officer, Donna Morris, said the expanded price cut takes effect immediately. Walmart's approximately 1.6 million U.S. employees qualify for the discount after their first 90 days with the company. With the expansion, the reduction w

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