Walmart’s business in the United States remains strong, despite tariffs and recession fears, and the company may benefit from the trade war.

“We are equipped to manage this as well or better than other retailers,” finance chief Rainey said on a call with analysts.

Sales at stores open for at least a year grew 4.5% last quarter, driven by its grocery business. Walmart said it gained with higher-income households last quarter.

Walmart’s stock jumped 2% during pre-market trading.

Walmart’s investments have helped it gain more upper-income shoppers in recent years. Historically, Walmart’s primary customers have been lower and middle-income Americans.

Analysts say the company can use its scale and wide supplier base to keep prices down for customers, even as tariffs raise its costs. This could help Walmart gain market share against competitors in the coming months.

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