Walmart said on Thursday it will raise its prices due to higher costs driven by President Trump’s trade war, a sign that tariffs are hitting the economy and consumers despite moves to ratchet them down.

The retail giant said that it plans to raise prices this month and early this summer, passing along some of the cost as tariff-affected merchandise hits store shelves. 

“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told The Wall Street Journal.

Walmart also announced its profits slipped in the first quarter of the year, to $4.45 billion or 56 cents per share, from $5.10 billion or 63 cents per share, The Associated Press noted.

It did not issue a profit outlook, given the uncertainty surrounding Trump’s tariff regime, joining a number of other companies that have taken the same stance.

“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,” said Walmart CEO Doug McMillon in a statement.

Walmart sells all kinds of low-cost household goods and apparel that could be hammered by Trump’s tariffs.

The Trump administration this week made a significant pivot with one of the largest U.S. trade partners, China, which has factories that produce a number of products found on U.S. shelves.

It lowered tariffs from 145 percent on Chinese imports to 30 percent, while Beijing lowered its tariffs on U.S. goods from 125 percent to 10 percent. The moves caused markets to shoot up on Monday after they had fallen earlier on Trump’s tariffs.

The reduction in tariffs is a pause for 90 days, however, that is meant to allow the two sides to work out a longer-term deal. But there is no guarantee that such a deal will be realized, creating uncertainty for many companies, Walmart among them.

Trump also paused his “Liberation Day” tariffs on much of the world in April for 90 days to allow time for negotiations with a host of nations. Most countries were still hit with a 10 percent tariff on goods. It is unclear how successful the administration will be in negotiating deals with trading partners from the European Union to Vietnam and South Korea.

Walmart on Thursday did say it expected its sales to grow 3.5 percent to 4.5 percent for the rest of the year. Its revenue rose 2.5 percent to $165.61 billion.

The Associated Press contributed to this report.