Trump Tells Walmart to “Eat the Tariffs” After Retailer Warns of Price Increases
President Donald Trump issued a direct challenge to Walmart on Saturday, demanding the retail giant absorb the costs of his administration’s tariffs rather than passing them on to consumers, according to CNBC. The confrontation came after Walmart warned that it would need to raise prices on numerous products due to tariff-related cost pressures.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote on Truth Social. “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!!!”
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Retailer Cites Narrow Margins
Walmart’s announcement came during Thursday’s earnings call, where CEO Doug McMillon stated that while the company would “do our best to keep our prices as low as possible,” the magnitude of the tariffs made it impossible to absorb all the increased costs given “the reality of narrow retail margins,” as reported by CNN.
Chief Financial Officer John David Rainey told CNBC that despite being pleased with the Trump administration’s decision to reduce tariffs on Chinese imports from 145% to 30%, the current levels are “still too high.” Shoppers could begin seeing price increases as soon as late May, with more substantial hikes expected in June.
White House Confrontation Strategy
The public rebuke of Walmart represents an escalation in the White House’s approach to managing inflation concerns amid its trade policies. According to Axios, the administration is facing the risk of tariff-driven inflation and has “turned to publicly threatening retailers to keep prices in check.”
Trump’s confrontation with Walmart follows similar public disputes with other major companies. Last month, the White House criticized Amazon after reports emerged that the company was considering displaying the added cost of tariffs on some items. Trump also recently threatened Mattel after the toymaker announced plans to raise prices due to tariffs.
Products Affected by Tariffs
Walmart imports merchandise from numerous countries facing tariffs, including China, Mexico, Vietnam, India, and Canada. McMillon specifically mentioned that tariffs on countries like Costa Rica, Peru, and Colombia have put pressure on imported items such as bananas, avocados, coffee, and roses.
Electronics and toys from China are particularly affected by the 30% duties. According to the Toy Association, approximately 80% of toys sold in the United States are manufactured in China, making this sector especially vulnerable to tariff impacts.
Retail Industry Response
In response to Trump’s demands, Walmart issued a statement saying the company has “always worked to keep prices as low as possible and we won’t stop.” The spokesperson added, “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Walmart is not alone in its response to tariffs. Microsoft recently increased the recommended retail prices of Xbox video game consoles and some controllers, while Mattel announced it is moving production out of China but still expected to raise prices on some toys. Ford has also warned it would need to increase prices on certain vehicles.
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