Trump tells Walmart to ‘eat the tariffs’ as retailer warns of price hikes
President Donald Trump on Saturday said Walmart should stop blaming tariffs after the retailer announced price increases.
Walmart’s CEO, Douglas McMillon, said the higher prices are due to Trump’s tariffs, especially on Chinese goods. He added that despite efforts to keep prices low, narrow retail margins make it impossible to absorb the full cost.
Trump responded on Truth Social, saying, “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge customers anything. I will be watching, and so will your customers.”
Trump’s remarks follow Commerce Secretary Howard Lutnick’s statement on CNN, where he said businesses and countries usually bear the cost of tariffs. Former Treasury Secretary Larry Summers called this idea “ludicrous.”
Experts told CNN that tariffs will mostly hurt lower- and middle-income Americans, who shop at Walmart for essential items like groceries.
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Price hikes are expected by the end of May and may rise further in June, according to Walmart’s finance chief, John David Rainey, who spoke to CNBC.
Walmart has over 4,600 stores in the US and imports goods from countries including Canada, China, India, Mexico, and Vietnam. These countries face tariffs starting at 10 percent, while steel, aluminum, cars, and auto parts imports face 25 percent tariffs.
“All tariffs add cost pressure, but the larger tariffs on China impact us the most,” said McMillon.
Trump had raised tariffs on many Chinese goods up to 145 percent. This was reduced to 30 percent as part of a 90-day truce with China. Trump warned tariffs could rise again if no trade deal is reached.
Other countries are in talks with the US during the 90-day tariff pause. Lutnick said tariffs will not go below 10 percent during negotiations.
Trump’s trade policies have lowered consumer confidence. The University of Michigan reported that consumer sentiment dropped 2.7 percent from April to May, near a record low, partly due to fears of a recession.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
