Consumer Resilience at Risk From Tariff-Induced Price Increases

US retailers from Walmart Inc. to Home Depot Inc. are expressing optimism about the resilience of US consumers, a sentiment that could soon be put to the test as tariff-fueled price hikes increasingly show up on shelves.

On Thursday, Walmart increased its full-year sales outlook on continued momentum and noted that people’s shopping habits have remained consistent. Earlier in the week, Home Depot Chief Financial Officer Richard McPhail remarked that the company’s customers are “very healthy.” Target Corp.’s sales, while still falling from a year earlier, were better than expected.

In the background, though, were cautions that more price ...