In a Saturday Truth Social post, President Trump took aim at Walmart, asserting that the retailer should absorb the increased costs resulting from his imposed tariffs.
The President’s remarks follow his administration’s implementation of heightened import taxes. While the President has stated that foreign producers would bear the brunt of these taxes and that domestic retailers and automakers should shoulder any additional expenses, economic analysts have expressed mainly skepticism.
Walmart’s CEO, Douglas McMillon, attributed the anticipated price hikes directly to the President’s tariffs, characterizing them as “too high,” particularly concerning goods imported from China. “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,” McMillon stated during an earnings call on Thursday.
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In his Truth Social post, the President directly addressed the retail giant, a major employer with 1.6 million individuals in the United States. He suggested that the Arkansas-based company should sacrifice its profits to support his economic agenda, which he claims will ultimately foster growth in domestic manufacturing jobs.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” the President posted. “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!!!”
Economists have warned that the tariffs will disproportionately burden lower- and middle-income Americans, historically Walmart’s core customer base. These consumers often rely on the retail giant for essential purchases, including groceries.
Walmart’s finance chief, John David Rainey, told CNBC that price increases are expected to take effect by the end of May, with “much more” significant hikes anticipated in June.
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Walmart, which operates over 4,600 stores in the United States, sources merchandise from various countries, including Canada, China, India, Mexico, and Vietnam. These nations face tariffs of at least 10%, while imports of steel, aluminum, cars, and auto parts face tariffs of 25%. “All of the tariffs create cost pressure for us, but the larger tariffs on China have the biggest impact,” McMillon explained.
These trade measures appear to be casting a shadow over an otherwise resilient U.S. economy. A report from the University of Michigan survey of consumer sentiment released on Friday revealed its second-lowest reading on record, with approximately 75% of respondents spontaneously citing tariffs as a primary concern driving their expectations of accelerating inflation.
The President had previously increased tariffs on most Chinese goods to a staggering 145%, but this rate was reduced to 30% on Monday as part of a 90-day truce with China. However, Trump has cautioned that the tariffs could become “substantially higher” if a trade agreement is not reached.
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Additionally, the President has imposed tariffs as high as 25% on goods from Mexico and Canada, citing concerns over illegal immigration and drug trafficking, actions that have strained relationships with America’s two largest trading partners.
A general baseline tariff of 10% is in effect for most countries as the President has stated his intention to secure trade agreements in the coming weeks.
This follows earlier market disruptions in April caused by the imposition of higher import taxes based on trade deficits. The President has maintained that the tariffs will serve as a revenue source and that a proposed framework agreement with the United Kingdom would largely maintain the 10% tariff rate.
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