Walmart Blames Trump Tariffs for Price Hikes, Trump Urges Retailer to Absorb Costs

President Donald Trump has publicly criticized Walmart for its decision to raise prices in response to increased tariffs on imported goods. Walmart had warned that a wide range of products, from everyday items like bananas to essentials such as children's car seats, could see price increases due to the higher import taxes. Walmart's CEO, Doug McMillon, attributed the price hikes directly to Trump's tariffs, stating that the tariffs were "too high," especially for goods originating from China.

Trump, in response, took to his social media platform, Truth Social, to express his displeasure. He urged Walmart to absorb the costs of the tariffs rather than passing them on to consumers. "Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," Trump wrote. "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.” He concluded his message with a warning, stating, “I’ll be watching, and so will your customers!!!”

Walmart, however, maintained its stance, asserting that it has always worked to keep prices as low as possible. A spokesperson for the company, Joe Pennington, reiterated that Walmart would continue to do its best to keep prices low, given the narrow retail margins. The retail giant had announced price hikes earlier in the week, despite Trump's temporary reduction of the import tax on China from 145 percent to 30 percent. China, in turn, agreed to lower its counter-tariff from 125 percent to 10 percent.

Walmart's CFO, John David Rainey, expressed satisfaction with the progress made by the administration on tariffs but emphasized that the current levels were still too high. This exchange highlights the ongoing tension between the administration's tariff policies and the impact on domestic retailers. Walmart's situation underscores the challenges faced by large retailers in balancing the costs of tariffs with the need to maintain competitive pricing for consumers. The company's decision to raise prices, despite the administration's calls to absorb the costs, reflects the financial pressures and narrow margins within the retail industry.