On Saturday, former President Donald Trump publicly criticized Walmart after the retail giant indicated that his tariffs would necessitate a price increase for consumers. In a post on his social media platform, Truth Social, Trump expressed his discontent, asserting that Walmart has the financial capacity to absorb the additional costs associated with the new import taxes rather than passing them onto customers.
“Walmart should STOP trying to blame tariffs as the reason for raising prices throughout the chain,” Trump stated. He emphasized that Walmart had generated “BILLIONS OF DOLLARS” in profits the previous year, exceeding expectations significantly. Trump urged the retail behemoth, which holds the title of the nation’s largest retailer, to “EAT THE TARIFFS” and maintain affordable prices for consumers. “I’ll be watching, and so will your customers,” he warned.
Trump’s remarks come amidst his ongoing efforts to manage inflation while attempting to mitigate the negative effects of his trade policy on consumer prices. On Thursday, Walmart announced that Trump's tariffs, even at the newly reduced levels, would likely compel the company to start increasing prices on its extensive range of affordable goods.
“We will do our best to keep our prices as low as possible,” stated Walmart’s chief executive, Doug McMillon, during a call with analysts. However, he cautioned that the retail giant would not be able to “absorb all the pressure” that the tariffs impose on their pricing strategy.
The situation highlights a significant tension between retail giants like Walmart and government trade policies, with consumers potentially facing higher prices as a result of these economic decisions. As the largest retail chain in the country, Walmart's pricing strategies are closely watched by both the public and policymakers alike.
