Major U.S. retailers are deciding whether to pass higher costs from tariffs directly to consumers and risk losing them, or absorb the increases and hope shoppers remain loyal.

Walmart, a bellwether for U.S. retailers, on Wednesday reported a jump in second-quarter sales. CEO Doug McMillon said the company is working to avoid raising prices, but costs for new inventory are climbing.

"We're keeping our prices as low as we can for as long as we can," he said. " ... As we replenish inventory at post-tariff price levels, we've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters."

Target, Lowe’s and Home Depot also reported earnings this week, each pointing to challenges from tariffs. Target leadership said Wednesday that price incre

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