Trump’s Bold Call: Walmart Should ‘Eat the Tariffs’
In a surprising statement on Saturday, President Donald Trump urged retail giant Walmart to absorb the impact of tariffs instead of passing those costs onto consumers. This comment came after Walmart hinted at potential price increases due to the current trade policies that have stirred instability in the retail sector.
Walmart’s Financial Position: A Reason to Hold the Line on Prices
“Walmart should STOP trying to blame tariffs as the reason for raising prices throughout the chain. They made BILLIONS OF DOLLARS last year, far exceeding expectations,” Trump stated on his Truth Social platform. He insisted that both Walmart and China should “EAT THE TARIFFS” rather than burdening their customers with increased prices. “I’ll be watching, and so will your customers!” he added emphatically.
This statement came in the wake of comments made by Walmart CEO Doug McMillon during an earnings call. McMillon expressed concerns that “higher tariffs will result in higher prices” for consumers despite recent reductions in tariff rates for various countries.
The Financial Landscape: What Are Customers Facing?
Walmart’s Chief Financial Officer, John David Rainey, also weighed in, indicating that higher prices are likely on the horizon. He noted, “Certain items, certain categories of merchandise, that we’re dependent upon to import from other countries, and prices of those things are likely going to go up, and that’s not good for consumers.”
In the first quarter of 2025, Walmart reported impressive revenues of $165.6 billion, with its e-commerce sales surging by 21%. However, the company imports roughly one-third of its merchandise from various countries including China, Canada, India, Mexico, and Vietnam, making it vulnerable to the repercussions of tariffs.
Shifting Tariff Policies and Their Implications
Last month, Trump raised tariffs on most Chinese goods to a staggering 145%, but these rates were recently reduced to a baseline of 30% as part of a 90-day pause on higher tariffs. If a trade agreement isn’t reached, Trump has warned that these tariffs could become “significantly higher.”
The Company’s Stance: We Aim to Keep Prices Low
In response to Trump’s comments, a spokesperson for Walmart maintained that the company is committed to keeping prices low for its customers, stating, “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.”
As the retail landscape continues to evolve under the pressures of trade policy and economic uncertainty, it remains to be seen how companies like Walmart will adapt. Will they heed Trump’s call to absorb the costs, or will consumers ultimately feel the pinch of higher prices? Only time will tell.
