The multibillion-dollar Walmart corporation should absorb price increases resulting from President Trump’s tariffs and trade deals, rather than pass the costs on to consumers, the president said Saturday.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote on Truth Social. “Walmart made BILLIONS OF DOLLARS last year, far more than expected.”
“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!!!”
Trump’s message to the US retail giant came as Walmart CEO Douglas McMillon told investors on an earnings call Thursday that the company would likely have to increase prices, saying, “We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”
“All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact,” McMillon added.
Speaking to CNBC Thursday, Walmart CFO John David Rainey also claimed the pressure from tariffs was too great for the company’s profit margins.
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” Rainey said. “It’s more than any supplier can absorb. And so I’m concerned that consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
In a statement to CNN Saturday, Walmart reiterated its commitment to low prices, but left the possibility of price hikes on the table, saying, “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.”
It remains to be seen whether Walmart leadership will be dumb enough to draw the ire of the president — and customers — by raising prices, or make the right call and stand with American consumers.
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