US President Donald Trump blasted Walmart and saying “eat the tariffs” instead of passing the cost on to American consumers. Trump took to social media on Saturday, accusing Walmart of blaming his administration’s import duties for price hikes. He asked the company to absorb costs itself.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,” Trump wrote on Truth Social. “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!!!”
Trump spoke after Walmart announced on Thursday that prices on many items like groceries and children’s car seats might increase soon. Walmart’s warning came in defiance of the government’s move to lower tariffs temporarily for Chinese imports.
Walmart CEO Doug McMillon said during the company’s earnings call, “We can control what we can control. Even at the reduced levels, the higher tariffs will result in higher prices.”
The company expects these price increases to take effect later this month.
WALMART SAYS IT’S DOING ITS BEST TO KEEP PRICES LOW
A Walmart spokesperson responded to Trump’s criticism, telling CBS News that the company is committed to keeping costs down for shoppers. “We’ll keep prices as low as we can for as long as we can given the reality of small retail margins,” the spokesperson said. “We won’t stop.”
Walmart’s Chief Financial Officer, John David Rainey, described how despite price control efforts, certain products are becoming more costly to manufacture. He indicated that a $350 car seat produced in China could soon be an additional $100 higher because of tariffs.
“We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” Rainey told The Associated Press.
Walmart is not alone in dealing with tariff headwinds. Other large companies, like Amazon and Apple, have also been hit by supply chain issues and rising costs. Numerous companies have lowered their annual estimates due to consumers reducing spending in reaction to higher prices.
Trump had promised that tariffs would mostly be paid by foreign countries, not US businesses or consumers.
The Republican leader has also cautioned automakers and other American companies against price hikes.
TARIFFS STILL A KEY PART OF TRUMP’S TRADE PLANS
Earlier this year, Trump’s administration lowered tariffs on Chinese imports to 30% from 145% for 90 days. But he still maintains that tariffs are a central component of his strategy to make America great again. He thinks tariffs will generate additional manufacturing jobs in the United States.
Besides China, Trump has also levied tariffs on Canada and Mexico for illegal immigration and drug smuggling. These actions have put a strain on two of America’s largest partners in trade.
There is now a general tariff rate of 10% applied to most nations, and this has been promised by Trump to remain unchanged while he negotiates new trade agreements. A possible agreement with the United Kingdom will also maintain the 10% tariff.
Trump has also imposed import duties on items like autos, steel, aluminium, and could soon add pharmaceutical medicines.
