Walmart to Raise Prices Due to Tariffs, Trump Criticizes

U.S. President Donald Trump has criticized Walmart for announcing price increases on its products, asserting that the retail giant should absorb the costs of tariffs rather than passing them on to consumers. This statement came in response to Walmart's announcement that it would raise prices due to the impact of tariffs on its supply chain.

Walmart's Chief Executive Officer, Doug McMillon, had previously stated during a financial earnings call that the company would strive to keep prices as low as possible. However, he acknowledged that the high tariffs imposed by the Trump administration made it challenging for the company to absorb all the costs. "We will do our best to keep prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, considering the thin retail profit margins, we cannot absorb all the pressure," McMillon said.

In response, Trump took to his social media platform, Truth Social, to criticize Walmart. "Walmart should 'eat the tariffs' and not charge their loyal customers any extra fees. I will be watching, and so will your customers!" he posted. This sentiment was echoed by U.S. Commerce Secretary Wilbur Ross, who suggested that businesses and related countries should primarily bear the cost of tariffs.

Economists have warned that tariffs could disproportionately burden low- and middle-income Americans, who are traditionally Walmart's primary customer base. In a statement released on Saturday, Walmart reiterated its commitment to maintaining low prices, emphasizing that it would continue to strive for affordability despite the challenges posed by tariffs.

Walmart's Chief Financial Officer, John David Rainey, indicated that the company's price adjustments could take effect by the end of May, with a more significant price increase expected in June. This decision reflects Walmart's strategy to maintain customer loyalty and market share, even as it faces increased operational expenses due to tariffs.

The ongoing trade tensions and the resulting tariffs have created a complex situation for retailers like Walmart, which rely heavily on imported goods. The company's decision to absorb some of the tariff costs is a strategic move to navigate the challenges posed by the current trade environment. The outcome of this situation will likely have significant implications for both Walmart and its customers, as the company continues to balance the need for affordability with the pressures of increased costs.