Walmart Inc (WMT) shares plummeted 5.53% in pre-market trading on Thursday, as escalating trade tensions and the retailer's own cautious sales forecast stoked fears over the impact on consumer spending.

The pre-market plunge came after Walmart forecast fiscal 2026 net sales growth of just 3-4%, below Wall Street estimates of 4% growth. The company cited a likely pullback in spending from inflation-weary consumers as a key factor behind the subdued outlook.

The retail giant's guidance compounds broader concerns over rising trade frictions and new tariff threats from President Donald Trump's administration. In recent weeks, Trump has announced plans for fresh tariffs on a wide range of imported goods, including lumber, cars, semiconductors and pharmaceuticals from various trade partners.

Analysts warn that an intensifying trade war could further stoke inflation pressures and force consumers to curb discretionary spending, hitting major retailers like Walmart. The retail sector has already faced persistent softness in high-margin general merchandise as shoppers tighten their belts amid elevated grocery costs.