President Trump ripped into Walmart on social media Saturday, saying the retail behemoth should “eat the tariffs” rather than blaming his administration’s duties on imported goods for rising prices.
Walmart warned on Thursday that prices for everything from bananas to children’s car seats could rise, despite China’s softer tariffs.
“We can control what we can control,” Walmart CEO Doug McMillon stated during the company’s first-quarter earnings call on Thursday. “Even at the reduced levels, the higher tariffs will result in higher prices,” according to him.
The price hikes are expected to take effect later this month.
As Mr. Trump raised import taxes, he attempted to reassure a skeptical public that foreign producers would pay for them and that retailers and automakers would bear the additional costs.
In a Truth Social post on Sunday, the president slammed Walmart, which employs approximately 1.6 million people in the United States, saying the company should sacrifice profits for the sake of his economic agenda. Mr. Trump claims his economic plan will eventually result in more domestic manufacturing jobs.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” President Donald Trump wrote. “Walmart made billions of dollars last year, far exceeding expectations. Walmart and China should, as the saying goes, “EAT THE TARIFFS,” and not charge valued customers anything. “I’ll be watching, as will your customers!!!”
Walmart’s spokesperson told CBS News on Saturday that the company has always worked to keep prices as low as possible, and that “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,” a spokesperson told me.
The Republican president’s threat reflected the increasingly awkward series of choices that many major American companies face as a result of his tariffs, ranging from declining sales to the risk of incurring Mr. Trump’s wrath. Mr. Trump has also warned domestic automakers not to raise their prices, despite outside estimates that his tariffs would raise production costs.
In April, McMillon was one of the retail executives who met with President Trump at the White House to discuss tariffs and potential negative consequences. Despite warnings, the Trump administration went ahead and attacked other companies, including Amazon and Apple, that are dealing with supply chain disruptions.
Walmart’s chief financial officer, John David Rainey, believes $350 car seats made in China will soon cost an additional $100, representing a 29% price increase.
“We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” he told The Associated Press on Thursday, after the company reported strong first-quarter sales.
As consumers cut back on spending, many US companies have reduced or withdrawn their full-year forecasts.
The administration recently reduced its tariffs on China from 145% to 30% for a 90-day period. Trump has imposed tariffs of up to 25% on Mexico and Canada in response to illegal immigration and drug trafficking, undermining America’s relationship with its two largest trading partners.
As Trump promises to reach trade deals in the coming weeks, he maintains that tariffs will remain in place as a revenue source. The framework agreement with the United Kingdom would largely maintain the current 10% tariff rate.
Trump has also imposed import taxes on automobiles, steel, and aluminum, and intends to do so on pharmaceutical drugs, among other products.
