President Donald Trump sharply criticized Walmart on Saturday after the retail giant warned that it would have to raise prices due to tariffs. On Truth Social, Trump wrote, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Between Walmart and China, they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
Walmart’s Price Increase Due to Tariffs
Walmart’s Chief Financial Officer John David Rainey spoke to CNBC on Thursday about the challenges posed by tariffs, stating, “We have not seen price increases at this magnitude, in the speed in which they’re coming at us before, and so it makes for a challenging environment.” Walmart, as the largest grocer and a key player in the retail sector, is often considered an indicator of U.S. consumer behavior.
Rainey expressed that although he was “pleased with the progress” made on tariffs by the Trump administration, he still felt the tariffs were “too high.” This was despite a 90-day reprieve that reduced duties on Chinese imports to 30%. Walmart imports various products, including electronics and produce from China and Central and South America.
Walmart’s Efforts to Keep Prices Low
To mitigate the impact of tariffs, Rainey indicated that Walmart would aim to keep prices lower than its competitors and would absorb some of the cost increases. He also noted that the company would work with suppliers to manage pricing as best as possible.
Responding to Trump’s remarks, Walmart reiterated its commitment to keeping prices as low as possible. A company spokesperson said, “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Other companies, including Microsoft, Mattel, and Ford, have also announced price hikes due to tariffs. Walmart maintained its sales forecast for the year, but refrained from providing specific earnings projections for the second fiscal quarter, citing the unpredictability of tariff policies under the Trump administration.
Shares of Walmart rose by 2% on Friday, closing at $98.24.
What The Author Thinks
While Trump’s suggestion that Walmart should simply “eat the tariffs” may resonate with some, the reality is more nuanced. Retailers face thin margins, and while they can absorb some cost increases, ongoing tariff volatility makes it difficult to keep prices stable in the long run. Rather than blaming retailers, it’s more constructive to focus on finding a sustainable resolution that allows businesses to thrive without unfairly passing the burden onto consumers.
Featured image credit: Wikimedia Commons
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